ABC News 1978 1979


1001 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Top Italian banker promoted

BYLINE: BY RUPERT CORNWELL IN ROME

SECTION: SECTION I; Overseas News; Pg. 2

LENGTH: 243 words

DR MARIO SARCINELLI has been named as Director General of the Italian Treasury
Ministry replacing Dr Felice Ruggero, who has been forced to step down after his
name appeared in the membership lists of the P-2 Freemasons lodge last summer.

The promotion of Dr Sarcinelli from his present post of Deputy Director General
of the Bank of Italy was announced after a Cabinet meeting yesterday. It
effectively closes the last chapter in the 1979 "Bank of Italy Affair," in which
he was a main target of a trumped-up attack on the central bank.

Dr Sarcinelli was imprisoned on the orders of investigating magistrates for two
weeks, before being released and subsequently cleared of wrong-doing.

The appointment has coincided with new statistics showing a worsening of Italy's
trade performance after the marked improvement of October. November's deficit
almost tripled to L1,158bn (£500m) from the previous month's L410bn. The
accumulated deficit for the first 11 months of 1981 reached L16,543bn (£7.1bn),
slightly lower than the L17,368bn short-fall in the same period of 1980.

At the same time, unemployment continued to climb. At the end of October,
according to figures issued yesterday, the jobless total reached 2.1m, or 9.1
per cent of the workforce. Industry's difficulties since then have, if
anything, increased, and the current total almost certainly is higher still,
carrying Italy closer still to double-digit unemployment.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Sig Sarcinelli

Copyright 1982 The Financial Times Limited

1002 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Alliance elections pact 'applies in Scotland'

BYLINE: By Our Scottish Correspondent

SECTION: SECTION I; UK News; Pg. 3

LENGTH: 242 words

THE LIBERALS and Social Democrats agreed last night that the guidelines on which
seats their alliance should fight at the next general elections will apply to
the 71 seats in Scotland.

But the meeting decided to sidestep the nagging dispute between the parties over
a candidate for the Greenock and Port Glasgow constituency.

They did not announce who would be the alliance candidate in the Glasgow
Hillhead constituency for the by-election caused by the death of Sir Thomas
Galbraith, the sitting Conservative MP.

Mr Bob Maclennan, SDP MP for Caithness, and Mr Russell Johnston, for the
Liberals, said they hoped the candidate for Hilhead would be announced by the
end of the week. This will enable both parties to complete the constitutional
process of selection.

The local SDP in Glasgow had unanimously backed Mr Roy Jenkins as its candidate,
but the party has yet to announce its nomination at national level.

Mr Maclennan said the two sides agreed that they would not let differences over
Greenock and Port Glasgow sour their developing relations.

"We agreed to put it aside," he said.

The Liberals in Greenock have challenged the candidature of Mr Dickson Mabon,
the sitting MP, the other Scottish defector from Labour to the SDP.

The alliance did not set a deadline for a solution to the dispute.

At the meeting, the two sides discussed their joint candidates for regional
elections in Scotland in May.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1003 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Tories look to Hillhead toffs to keep their only Glasgow seat

BYLINE: Mark Meredith

SECTION: SECTION I; UK News; Pg. 3

LENGTH: 560 words

HIGHLIGHT: Mark Meredith on what the by-election in the city's affluent area may
bring

HILLHEAD is the posh bit of Glasgow north of the Clyde, where toffs live in
Wally closes and the ladies of Kelvinside are reputed to consider sex as
something used to carry coal.

The Wally closes are exclusive but elderly apartment buildings in the Hyndland
district, where the tiles in the hallway go all the way to the top of the
building and don't just stop at the first floor.

The site of Britain's next by-election has some of the city's finer residential
architecture, one of its top fee-paying schools and a lot of the city's
owner-occupiers and professional people.

Despite the fact that this constituency has returned a Conservative since 1922,
the area does not shout "Tory." There is a heavy portion of industrial structure
to offset the more refined parts.

And there is every indication that its days as Glasgow's only Conservative seat
in a sea of Labour voters are about to come under strain. The character of the
area is changing and the proposed boundary alterations for the next general
election make the future for Hillhead much less certain.

The death last week of Sir Thomas Galbraith, who held the seat since 1948, is
likely to plunge this part of Glasgow into political turmoil, the likes of which
it has not seen for decades.

Along with its fine buildings, including the newly restored Grosvenor Hotel
overlooking the botanical garden, the constituency has an industrial side which
stretches along the Clyde docks, many of them moribund, and includes industrial
activity around the Albion motor works, the Yarrow yard and a string of
industrial shops and warehouses filling up the gaps left by dying shipyards.

It has a large belt of worker housing in Scotstoun which one analyst said had
been traditionally the source of Orange Lodge support for the Conservatives.

But in district elections in 1980, this area returned a Labour councillor,
whereas the other three councillors from Hillhead on Glasgow City Council are
Conservatives. The councillors on Strathclyde Regional Council from Hillhead
are both Conservatives. They come up for re-election this year.

Local politicians explain the existence of this Conservative enclave in several
ways.

The nature of the area's housing has tended to favour people who might vote
Conservative, they say. Hillhead has one of the largest proportions of
privately-owned housing in Glasgow, a city with a vast amount of public housing.

A large population of elderly owner-occupiers might also be counted on to vote
Conservative because the area appeals to professional people.

Hillhead is a kind of dormitory for Glasgow University, just outside its
boundary and the constituency includes the fee-paying Glasgow Academy as well as
Jordanhill teaching college.

The presence of the university may account for the increasing numbers of
boutiques and small restaurants which have added flavour to parts of Hillhead.

High in the mind of the prospective candidate for this by-election will be the
worry whether he or she can hold on to the seat after boundary changes.

The effect of these changes is to take some of the industrial belt along the
Clyde out of Hillhead but add some areas of Kelvingrove to the east. This will
help the Conservatives by removing one district which voted Labour, but the
votes of the new areas are much less certain.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1004 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Phillips takes first step to develop £1.5bn oil field

BYLINE: BY RAY DAFTER, ENERGY EDITOR

SECTION: SECTION I; UK News; Pg. 3

LENGTH: 415 words

A NORTH SEA exploration group, led by Phillips Petroleum, has taken the first
step in a field development plan costing about £1.5bn.

The group is calling for tenders for the preliminary design of production
facilities for its complex of fields in the so-called T block, 160 miles
north-east of Aberdeen.

Phillips is also conducting a new seismic survey of the block in a further bid
to assess its oil-producing potential. So far 12 wells have been drilled on the
licence concession -- block 16/17. Nine of these wells located oil in
reservoirs designated Tiffany, Teresa, Toni, Thelma and Tina.

It is understood that if Phillips decides to proceed with development -- and the
group is still some way from making such a commitment -- it will first exploit
the Toni and Tiffany reservoirs in the northern portion of the block.

Phillips is calling for the design of two fixed steel platforms, drilling
equipment, flow lines and subsea well units. The work is expected to begin in
February and to take about nine months.

The group, which includes four other partners, is also planning to await the
outcome of the Government's reappraisal of the North Sea tax structure before
committing itself to a development plan.

Phillips has yet to publish recoverable reserve estimates for T block.
According to Wood, Mackenzie, the stockbrokers, however, the block could contain
between 200m and 400m barrels of recoverable oil and 500-800bn cubic feet of
gas.

As such the T block complex of fields ranks among the medium-sized discoveries
by North Sea standards. The geological complexity of the reservoirs and their
distance from shore will make it one of the more expensive projects. Wood,
Mackenzie estimates capital costs will be in the range of $3bn to $4bn.

According to industry reports Phillips and its partners may use British
Petroleum's pipeline between the Forties Field and Cruden Bay, Scotland, to
transport their T block oil.

It is likely, however, that natural gas will be transported by a completely new
line, possibly one built in co-operation with other nearby producers.

The T block was to have been the main junction point of the Government's
proposed £2.7bn gas-gathering complex which was abandoned last year because of
financing problems.

Partners in T block are: Phillips (35 per cent), Petrofina (30 per cent), Agip
(17.9 per cent), Century Power and Light (8.6 per cent) and London and Scottish
Marine Oil (8.5 per cent).

LANGUAGE: ENGLISH

GRAPHIC: Map, no caption

Copyright 1982 The Financial Times Limited

1005 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

High pay deals 'may prevent tax cuts'

BYLINE: By David Marsh

SECTION: SECTION I; UK News; Pg. 3

LENGTH: 330 words

MR LEON BRITTAN, Chief Secretary to the Treasury, yesterday warned workers to go
easy on pay claims for the next few months -- or risk a harsh spring Budget.

In the first major speech this year from a Treasury minister, Mr Brittan showed
that the Government is linking the level of pay awards to taxation.

His statement, at Kendal Town Hall, Westmorland, underlines the change in
Treasury rhetoric compared with the Government's early days when ministers
declared that pay would be set purely by the monetary policy.

High wage settlements would make the chance of tax cuts "even more remote," Mr
Brittan said.

His speech comes at a time when the 4 per cent public sector pay target looks
increasingly under threat and when Ford workers look likely to settle well above
the level the Government would like.

Mr Brittan appeared to be moving closer to the idea of an informal
government-union understanding on the link between pay awards and fiscal policy,
proposed by Social Democrat economists.

He stressed that the cost of high settlements was ultimately met not by
governments but by people -- in or out of work.

"At the same time the actual and likely levels of pay settlements are bound to
be an important element in the Government's assessment of its room for manoeuvre
at the time of the Budget," he said.

If pay settlements, in either the public or the private sector, were again to be
at levels which cannot be afforded, the prospects for growth and employment
would be worsened."

In the public sector, high pay awards meant more public spending. This would
lead to higher interest rates, taxes or charges, or lower investment, which
would all depress job prospects.

The same was true in the private sector. High settlements raised interest rates
or increased public spending on social security benefits.

Meanwhile, during the weekend, Treasury ministers and senior officials are
gathering to thrash out options for the Budget.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1006 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

London travel fares 'will double because of law lords' ruling'

BYLINE: BY LYNTON McLAIN, TRANSPORT CORRESPONDENT

SECTION: SECTION I; UK News; Pg. 3

LENGTH: 423 words

LONDON Transport fares will exactly double on March 21, bus and Tube traffic
will drop by a quarter by 1984 and entire bus routes, bus garages, Tube stations
and late-night bus services must go if official recommendations are accepted by
the Greater London Council at its crucial meeting on the future of London
Transport on Tuesday.

London Transport said these changes, now inevitable as a result of a recent
House of Lords legal ruling, "will cause real social distress."

The measures are recommended to help LT wipe out a combined deficit of £512m for
1981 and 1982. Urgent talks with the Government are also recommended with a
view to getting the law on transport subsidies changed.

Mr Ken Livingstone, GLC leader, said last night: "We are horrified at the full
implications. I wonder if the Government really appreciates the serious and
lasting damage facing London and its travellers."

Free travel for old people would have to be eliminated under the GLC's
interpretation of the Lords' decision. "For old people this is one of the
cruellest results of this harsh judgment,"

The recommendations have been made by three top GLC officials in response to the
revised 1982 outline budget from London Transport.

The revised budget was submitted in the light of the ruling by the law lords
last month that the GLC cheap fares policy for LT -- and the supplementary rate
to pay for it -- are illegal.

The recommendations were made by Mr Maurice Stonefrost, GLC comptroller of
finance, Miss Audrey Lees, controller of transportation and development, and Mr
James Fitzpatrick, solicitor to the council, to the council's transport and
finance committees.

Nevertheless, the officials are clearly not content simply to accept the
interpretation of the law lords. Their report, issued yesterday, said: "This
law has the most far-reaching implications for transport in London."

The council is urged by the officials "to join with others as quickly as
possible" in urging changes to the law. Any new law would return London
Transport "to the position intended by Parliament in the Transport (London) Act
1969.

The effect of the proposals on bus and tube services would be "horrific," Mr
David Wetzel, chairman of the GLC transport committee said yesterday.

Mr David Howell, Transport Secretary said after meeting Mr Livingstone that he
"deplored" the sharp rise in fares but this was a "regrettable part of the cost
of putting things right." There would be no Government aid to avoid the fares
increase.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1007 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

South Bank development approved in part

BYLINE: By Michael Cassell

SECTION: SECTION I; UK News; Pg. 3

LENGTH: 269 words

CONTROVERSIAL plans to build one of Central London's largest commercial
developments have been approved in part by Mr Michael Heseltine, Secretary for
the Environment.

The proprietors of Hay's Wharf, the distribution, shipping and property group,
owns more than 20 acres of land on the South Bank between Tower Bridge and
London Bridge. Early in 1980 -- just before it was taken over by the Kuwait
Investment Office -- the company submitted six preposals for about 2.5m sq ft of
mixed commercial floorspace on the site, worth £200m.

A public inquiry, held last March in the face of widespread objections from the
local community, continued for seven weeks. The Labour-controlled GLC opposes
the plan.

Last night, Mr Heseltine disclosed that the inquiry inspector had said the
applications should be treated as one comprehensive package and that he had
recommended refusal of all of them.

The Minister, however, did not accept that the "comprehensive approach" was
correct and had considered the applications separately.

As a result, he has granted outline planning permission to develop the area
adjacent to and including Cotton's Wharf and other buildings -- some listed --
in Tooley Street.

Mr Heseltine said, however, that some of the proposals would obscure Southwark
Cathedral and the scale of the plans was excessive. He has, therefore, approved
plans involving 738,000 sq ft of offices and about 84,000 sq ft of retail and
residential space. The original applications involved just more than 2m sq ft
of offices and 450,000 sq ft of residential, industrial and retail space.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1008 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Dunlop to close carpet tile plant

BYLINE: By Robin Reeves

SECTION: SECTION I; UK News; Pg. 3

LENGTH: 218 words

DUNLOP yesterday announced the closure of its Semtex floor coverings factory at
Brynmawr in South Wales with the loss of some 600 jobs and a consequential
withdrawal from the do-it-yourself rubber and carpet tile markets.

Its closure decision follows a three-week occupation of the Welsh factory by 450
employees. They were demanding withdrawal of 60 redundancy notices and
guarantees of further investment to secure the plant's long-term future.

Last Monday they rejected a return-to-work formula offered by the company.
Dunlop said that as a result of the effects of the sit-in, it saw "no
alternative except to proceed with the permanent closure of the plant."

The statement added: "The recent industrial action has irretrievably damaged the
division, already facing difficult trading conditions. It has forced major
customers to seek supplies elsewhere, uncermining the efforts of management to
continue manufacturing activity on the site."

According to the company's statement, its DIY division recorded a loss of £2.2m
in 1980 and, before the sit-in began, expected a loss of £1.5m in 1981.
Cumulative losses in the last five years had exceeded £6m.

The closure is another major shock to the Ebbw Vale area, which has suffered
badly from rundown of the steel industry.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1009 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Blizzards disrupt communications

BYLINE: FINANCIAL TIMES REPORTER

SECTION: SECTION I; UK News; Pg. 3

LENGTH: 203 words

ROAD, RAIL and air communications were severely disrupted throughout Britain
yesterday as blizzards and freezing temperatures returned.

The outlook for much of the country remains bleak. More snow is expected.

Most severely affected by yesterday's falls of snow were the South-West of
England, the Midlands and Wales. Temperatures plunged to -- 15 degrees C in
Endinburgh and Aberdeen.

Hundreds of roads were blocked in the South-West, with falls of snow up to nine
inches. Many railservices were suspended.

Many homes were without electricity in Cornwall after the weight of snow brought
power lines down.

In the London area airports were severely disrupted. Gatwick in Sussex was
closed to all traffic for 12 hours, reopening in mid-afternoon. It was hoped
that the backlog of flights could be cleared within 24 hours unless the weather
deteriorates further

Hundreds of workers in central London failed to report for work, with severe
delays on tube and railway services in the South-East region. Many employers
sent workers home in the early afternoon. Some intercity services from Euston
were cancelled and services to Birmingham, Liverpool and Manchester were cut by
50 per cent.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1010 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Slight rise in housing starts

BYLINE: BY MICHAEL CASSELL, BUILDING CORRESPONDENT

SECTION: SECTION I; UK News; Pg. 3

LENGTH: 185 words

A START was made on 13,800 new homes in Great Britain during November 1981, a
marginal improvement on the previous month but 2,400 higher than in the same
month a year earlier.

Provisional figures from the Department of the Environment indicate that, during
the three months to the end of November, the number of homes on which work began
in the private and public sectors combined showed a 3 per cent increase in the
previous quarter. At the same time, the output achieved was 18 per cent up on
the same period in 1980.

Yet although the number of starts indicates some continuous improvement in
building activity -- all accounted for by output in the private sector -- the
Department says that the number of completions has continued to fall, reflecting
earlier low levels of building starts.

Total housing completions in November reached 16,500 against 17,400 in October
and 19,800 in the same month of 1980. For the three-month period ending in
November, total completions fell by 3 per cent from the previous quarter and by
16 per cent when compared with the same period a year before.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1011 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Prudential admits bias against women

BYLINE: BY ERIC SHORT

SECTION: SECTION I; UK News; Pg. 3

LENGTH: 256 words

THE PRUDENTIAL Assurance Company, Britain's largest life insurance company,
yesterday admitted discriminating against women in its sickness policies.

The company was challenged in court by Mrs Valerie Turner, a company secretary
living at Thurlstone, near Sheffield, over a sickness policy. This contract
agreed to pay a benefit of £6 a week if she fell sick for an annual premium of
£14. But for the same premium, the benefit paid to a man was £10 a week.

Mrs Turner considered this clause unfair and failing to get a satisfactory
explanation from the company, she contacted the Equal Opportunities Commission,
which suggested court action under the 1975 Sex Discrimination Act.

The Prudential admitted before Judge Ranking at the City of London County Court
that it had breached the Act. Mrs Turner won £500 agreed damages from the
Prudential and the company will pay her £300 legal costs.

The 1975 Act allows for insurance companies to provide lower benefit for women
on insurance contracts, provided calculations are based on reliable actuarial
data. Mr Brian Corby, chief executive of the Prudential, admitted that under
the policy in question, benefits had not been based on the right data.

The Prudential's new permanent health insurance contract, paying sickness
benefits for permanent disablement would give women benefits at two-thirds of
the level for men. He emphasised that these benefits were based on reliable
published data which showed that women were more prone to sickness than men.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1012 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Jenkin to talk on small business

SECTION: SECTION I; UK News; Pg. 3

LENGTH: 26 words

MR PATRICK JENKIN, Industry Secretary, will explain the Government's business
opportunities programmes to 200 businessmen in Liverpool next Friday.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1013 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Invergordon cheap power worth £79.3m

BYLINE: By Roy Hodson

SECTION: SECTION I; UK News; Pg. 3

LENGTH: 223 words

A RESIDUAL value of £79.3m has been agreed between the Government and British
Aluminium for the company's rights to cheap power supplies up to the year 2000
at the Invergordon smelter which is about to be closed.

Figures disclosed by British Aluminium yesterday make clear that this valuation
was the crucial element in its settlement with the Government.

British Aluminium claims that the closure was necessary to save thousands of
other jobs in the group. The company said last night that the financial
settlement did not compensate for the heavy losses which it had suffered at
Invergordon, which is in the Highlands. The smelter employs 900 and the first
redundancy notices are being issued today.

British Aluminium will receive only £15.5m of the settlement. The North of
Scotland Hydro-Electric Board gets £47m to cover disputed power charges over the
past few years, and further £4.5m for routine electricity charges.

British Aluminium is also repaying £12.3m of government loans towards its share
of building the Hunterston B unclear power station in Strathclyde.

The Government has waived repayment of a further £21.2m on Hunterston loans.

The Highlands and Islands Development Board said last night that it was willing
to run the smelter temporarily if asked to do so by the Government.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1014 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

BL failed to spot £250,000 stolen stock

SECTION: Note: This table may be divided, and additional information on a
particular entry may appear on more than one screen.
SECTION I; UK News; Pg. 3

LENGTH: 473 words

A BL PLANT lost £250,000 of stock and nobody knew it had vanished, Glasgow
Sheriff Court heard yesterday.

It was not until a Leyland director was told that heavy vehicle engines worth
£5,000 were selling at bargain prices that an investigation began.

The director bought one of the "black market" engines himself, found it should
still have been in stock in Glasgow and called in the police.

Six engines worth £30,000 were found in Scotland and England, and the Royal
Ulster Constabulary found another 18 circulating in Ulster which nobody knew
about.

All should have been in stock at BL's Albion works in South Street, Scotstoun,
Glasgow. Alternators and Tachographs worth about £130,000 had also disappeared.

Mr William Summers, 44, of Barrhead, Strathclyde, director of a garage company,
admitted receiving 24 engines and a quantity of alternators and tachographs.

Sheriff John Mowat, who was told that all the equipment had been recovered,
fined Summers £7,500 and gave him three months to pay.
UK CAR REGISTRATIONS
December
1981 % 1980 %
Total UK produced 27,205 48.30 26,520 55.94
Total imported + 29,125 51.70 22,465 44.06
Total market 56,330 100.00 50,985 100.00
Ford * 18,390 32.65 17.665 34.65
BL * 11,914 21.15 11,312 22.19
General Motors --
  Vauxhall * 5,996 10.64 3,992 7.82
  Opel 358 604
Total GM 6,386 11.34 4,616 9.15
Peugeot group --
  Talbot * 1,853 3.28 3,366 6.60
Citroen 1,217 618
  Peugeot 652 608
Total Peugeot 3,722 6.61 4,592 9.01
Datsun 2,150 3.82 74 0.15
VW-Audi 2,282 4.05 2,260 4.43
Renault 2,984 5.30 4,174 8.19
Fiat 1,614 2.87 1,075 2.11
Volvo 2,090 3.71 1,265 2.48
UK CAR REGISTRATIONS
12 months ended December
1981 % 1980 %
Total UK produced 568,089 44.33 655,442 43.30
Total imported + 826,533 55.67 858,319 56.70
Total market 1,484,622 100.00 1,513,761 100.00
Ford * 459,365 30.94 464,706 30.70
BL * 285,071 19.20 275,793 18.22
General Motors --
  Vauxhall * 107,572 7.24 109,218 7.21
  Opel 18,796 22,869
Total GM 127,141 8.56 133,078 8.79
Peugeot group --
  Talbot * 68,048 4.58 90.874 6.00
  Citroen 27,395 27,006
  Peugeot 17,805 24,333
Total Peugeot 113,248 7.63 142,213 9.39
Datsun 88,209 5.94 91,893 6.07
VW-Audi 80,221 5.40 68,285 4.51
Renault 72,041 4.85 88,343 5.84
Fait 61,977 4.17 51,299 3.39
Volvo 44,558 3.00 38,283 2.53

* Includes cars from companies Continental associates which are not included in
the total UK figures.

+ Includes imports from all sources including cars from Continental associates
of UK companies.

Source: Society of Motor Manufacturers and Traders

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1015 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Minister criticises unilateralists

BYLINE: By Peter Riddell, Political Editor

SECTION: SECTION I; UK News; Pg. 3

LENGTH: 156 words

AN APPEAL to unilateralists to put away "fireside illusions" and to back the
negotiations between the U.S. and Soviet governments was made yesterday by Mr
Douglas Hurd, Minister of State at the Foreign Office.

Speaking at a conference in Oxford, Mr Hurd put forward what is likely to be the
main thrust of the Government's counter-attack against the unilateralists.

Mr Hurd said that in view of the Polish situation and the talks starting soon in
Geneva between the U.S. and Russia, the peace movements would have to reasses
their tactics.

"Events in Poland have knocked sideways the analysis on which most of them have
been operating. Much of their criticisms has been one-sided and directed at the
Americans alone.

"It is not credible any longer to speak, as they often do, of two sets of
politicians in East and West, equally blind and culpable, suppressing the desire
of their people for peace and disarmament."

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1016 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

BR calls meeting on Aslef stoppage threat

BYLINE: BY PHILIP BASSETT, LABOUR STAFF

SECTION: SECTION I; UK News -- Labour; Pg. 4

LENGTH: 272 words

BRITISH RAIL summoned the leaders of its three unions yesterday to a special
meeting of the Railway Staffs' National Council on Monday in another attempt to
avert next week's national strike by the drivers' union Aslef.

Aslef officials were last night deciding whether to attend the meeting. Their
decision may not be known until Monday morning, but if they decide not to the
meeting cannot take place even though the other two unions -- the National Union
of Railwaymen and the white-collar TSSA -- are expected to agree to take part.

The train drivers intend to stage their strike next Wednesday and Thursday but
the effect will begin to be felt from late Tuesday.

Senior BR officials were last night still insisting that the train drivers would
not be paid the second 3 per cent stage of last year's two-part 11 per cent pay
deal unless they agreed to flexible rostering of their working day. Equally,
Aslef seems unlikely to shift its ground.

The NUR represents about 500 BR drivers who, like their Aslef colleagues, have
also not reeceived the second 3 per cent. The union intends "forcibly" to
obtain the increase, though it would not confirm that its drivers intend to join
the Aslef strike.

Members of the British Railways board, including Mr Cliff Rose, member for
industrial relations, yesterday met Mr Murray, TUC general secretary, to inform
him of the invitation to all three unions. The TUC wants to see if it can help
in the dispute but it is not intervening formally.

Services continued to be disrupted to a limited extent yesterday by the Aslef
ban on overtime and rest-day working.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1017 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Steel union names date for ban on overtime

BYLINE: By Brian Groom, Labour Staff

SECTION: SECTION I; UK News -- Labour; Pg. 4

LENGTH: 150 words

THE IRON and Steel Trades Confederation (ISTC) yesterday named February 7 as the
starting date for its complete ban on overtime at British Steel Corporation.

The ban follows the breakdown of talks before Christmas on the corporation's
plan to pay this year's wage rises -- due at the start of January -- only on
locally-negotiated lump sum bonus schemes, linked to a new round of 15,000 job
losses by March 31, 1983.

Mr Bill Sirs, ISTC general secretary, said the starting date allowed time for
the corporation to rectify anticipated manpower shortfalls caused by the ban, if
necessary by taking on workers.

He said it also allowed time to get the policy across to ISTC members, some of
whom stand to lose considerable overtime earnings.

Mr Peter Broxham, the corporation's director of industrial relations, said last
night that he hoped the ISTC would reconsider its decision.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1018 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Ford union leaders agree to accept 7.4% offer

BYLINE: BY JOHN LLOYD, LABOUR CORRESPONDENT

SECTION: SECTION I; UK News -- Labour; Pg. 4

LENGTH: 282 words

UNION leaders representing Ford's 54,000 manual workers yesterday agreed to
accept the company's 7.4 per cent pay offer.

The offer includes a reduction in the working week by one hour to 39 hours from
June, equal pension rights for manual and white collar workers from August, and
agreement to a package of productivity measures.

It is hoped that agreement will end the unofficial strikes which have halted the
bulk of production at the company's Halewood plant on Merseyside, and at the
Swansea rear axle plant.

Mr Ron Todd, the union's chief negotiator, said yesterday that the Halewood and
Swansea convenors had agreed that the majority would prevail, and that they
would recommend acceptance. Swansea workers meet today while the 10,000
Halewood workers meet tomorrow.

However, Mr Steven Broadhead, the Halewood body plant convenor, said the shop
stewards would meet today to decide on their recommendations.

Production at Halewood body and assembly lines was halted yesterday for a fourth
day, though the transmission shop, where workers were split on the offer worked
normally. The company said the stoppage had lost 3,500 cars, valued at about
£16m.

The unions will meet the company next Tuesday to clarify the agreement, and to
sign the document which will allow the agreement on efficiency to be
incorporated into the "blue book" of procedures and agreements issued to all
Ford workers.

The wage increase will give the "B" and "C" grades of manual workers, who
account for 40,000 of the hourly-paid labour force, rises of £7.50 and £8.04
respectively, bringing their weekly earnings (on alternating day and night
shifts) to £128.44 and £134.33.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1019 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Sealink officers claim 100% strike backing

BYLINE: By Our Labour Staff

SECTION: SECTION I; UK News -- Labour; Pg. 4

LENGTH: 126 words

MERCHANT NAVY officers' leaders yesterday claimed their strike over planned
Sealink redundancies had halted all the company's ferry services. In a strong
attack on management, they called for an independent inquiry into Sealink's
future plans.

The union, the Merchant Navy and Airline Officers' Association claimed 100 per
cent success for its strike over the company's plan to make 100 officers
redundant at Newhaven and Harwich.

A National Union of Seamen meeting called to discuss joining the action, was
postponed until Monday because of the weather. The NUS is already taking part
in a sit-in on the threatened Newhaven ferry Senlac.

Mr John Newman, MNAOA assistant general secretary, sharply criticised the
company's management.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1020 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Nurses plan march to underline pay grievances

BYLINE: BY OUR LABOUR EDITOR

SECTION: SECTION I; UK News -- Labour; Pg. 4

LENGTH: 271 words

NURSES are to draw attention to their pay grievances by staging a 350-mile relay
march from Land's End to London, starting tomorrow.

The demonstration, organised by the Royal College of Nursing, will end on
January 24 with a rally in Trafalgar Square. The nurses will walk five-mile
relays, handing on a Florence Nightingale lamp at each stage.

The march is evidence of growing dissatisfaction in the profession. Union
leaders warn that there could be many protest demontrations before the nurses'
April 1 date for renewal of their pay agreement.

They have already seen the Prime Minister in an attempt to secure introduction
this year of a special pay system to restore earnings at a time the Government
has set a 4 per cent cash limit on the Health Service payroll increase.

Dr Gerard Vaughan, in an article in Nursing Mirror, refuses to give any firm
time-table for reviewing nurses' pay. "Nobody can say what will come out of the
talks but everybody is agreed they must go ahead quickly," he writes.

Nurses had been told they must await the findings of the Megaw inquiry into
Civil Service pay-determination. Its report is not due until the summer. "It
really did seem sensible to find out if this committee would have anything which
might be useful to nurses," Dr Vaughan writes.
* A claim for pay rises of £14.26 a week to match current price inflation, and
for a one-or two-hour cut in the working week, is to be submitted by the
National and Local Government Officers Association on behalf of its 120,000
Health Service members of whom 100,000 are in administrative and clerical posts.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1021 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Docks ultimatum at Southampton

SECTION: SECTION I; UK News -- Labour; Pg. 4

LENGTH: 117 words

SOUTHAMPTON'S 1,400 dockers have given the British Transport Docks Board an
ultimatum in an attempt to get the crisis-hit port back to work. They will
consider their pay and conditions agreement subject to renegotiation unless
normal shifts are restarted by January 16.

The dockers have been on basic pay of abour £105 a week since October 28, when
the employers suspended all but the day shift at container terminals because of
a dispute with 150 cargo checkers.

The docks board reached an 18-month deal with the dockers last July after a
three-month dispute. A demand for this to be renegotiated would compound the
port's problems after 10 months of almost continuous disputes.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1022 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Pay settlement near at Talbot

BYLINE: By Arthur Smith, Midlands Correspondent

SECTION: SECTION I; UK News -- Labour; Pg. 4

LENGTH: 92 words

HOPES for a peaceful settlement of the annual pay claim by 5,000 manual car
workers at Talbot were rising last night.

The company offered to introduce a 39-hour week from August this year in
negotiations yesterday. That concession might be sufficient to gain acceptance
for the whole package.

Talbot has refused to increase its original offer of a 2.5 per cent increase in
basic pay from January 1. However, the company has offered to consolidate into
basic pay around £5 of earnings enjoyed under a self-financing incentive scheme.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1023 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Pit strike support expected

BYLINE: BY CHRISTIAN TYLER, LABOUR EDITOR

SECTION: SECTION I; UK News -- Labour; Pg. 4

LENGTH: 149 words

MINERS' union officials in the Durham coalfield are hoping to secure at least a
60 per cent majority for a strike to force an improved wage offer from the
National Coal Board.

How the 17,000 Durham members of the National Union of Mineworkers vote could be
an important pointer to the outcome of the national pithead ballot called by the
NUM for the end of next week.

Formerly Right-wing led, the Durham area is becoming more militant, partly as a
result of recent and threatened pit closures.

Branch officials from 19 Durham pits voted unanimously yesterday to reject the
board's 8.6 per cent basic rate offer.

Meanwhile in Scotland, Mr Michael McGahey, area president, said he was confident
the mines would reject the offer next week. He was speaking after a meeting of
local leaders of the coal, steel and rail unions who will act together if the
miners go on strike.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1024 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Tory trade unionists go to No. 10

BYLINE: BY OUR LABOUR EDITOR

SECTION: SECTION I; UK News -- Labour; Pg. 4

LENGTH: 245 words

MRS THATCHER was urged by Conservative trade unionists last night to take action
on unemployment and worker participation.

Leaders of the Conservative Trade Unionists, an organisation claiming a large
and growing membership, said they were alarmed by the jobless figures and
suggested a number of remedies.

Their more controversial proposal, however, was that there should be a legal
requirement on companies to supply information and set up industrial democracy
machinery if they failed to take action voluntarily. Companies should also be
encouraged to extend share ownership among employees and these holdings should
enjoy tax relief.

The CTU suggested three ways in which the Government could help workers find new
jobs. The Departments of Employment and the Environment should co-operate more
closely on mobility of labour, and the Government's so-called "new training
initiative" should provide retraining for older workers as well as courses for
school-leavers.

The apprenticeship system should be made standard throughout Europe so that
workers could more easily seek employment abroad.

The CTU delegation to 10 Downing Street comprised Mr Geoff Campbell, chairman,
Mr Alan Paul, vice-chairman, Mr Tim Renton, MP, national president, and Mrs
Margaret Daly, CTU officer from Conservative Central Office.

Mr Campbell said afterwards: "The Prime Minister indicated that the Government
would give careful consideration to our proposals."

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1025 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Shocks absorbed -- rumours raised

SECTION: SECTION I; The Week in the Markets; London Onlooker; Pg. 4

LENGTH: 121 words

Rumour rather than fact lay behind some lively trading in equities in the second
half of the week. Come Tuesday's close the FT Industrial Ordinary Index was
back where it was at the start of the three week Christmas account. But
speculation about more dawn raids and some selective buying in the stores,
pharmaceuticals and chemicals sectors later helped the Index to a 12.6 point
rise on the account to finish at 531.4. Despite the shock in the discount house
sector, an inner sanctum of the London financial system, the gilt-edged market
managed to keep its head and staged a faint rally. The latest money supply
figures were interpreted as reasonably encouraging, showing a 1/4 per cent rise
in Sterling M3.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1026 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

A middle ground guru

BYLINE: PAUL BETTS

SECTION: SECTION I; The Week in the Markets; New York; Pg. 4

LENGTH: 779 words

THE YEAR STARTED badly on Wall Street. After finishing last year with an 89
point loss, the Dow Jones blue chip indicator was hit for six this week by the
combination of pessimistic forecasts for the 1982 American economy and some
current economc data further clouding the outlook.

At about the same time last year, Mr Joe Granville, the colourful stock tipster,
sent out his famous "sell" call which sent stocks crashing. With the exception
of a few choice stocks and take over candidates, most issues neverrecovered.

This year it was the turn of the infinitely more scholarly and highly respected
chief economist of Salomon Brothers, Mr Henry Kaufman. After a hesitant attempt
to rally, the market went tumbling down again when Mr Kaufman issued his
traditional New Year prognostications on the economic outlook.

The gist of his message was that interest rates would remain highly volatile
with an upward trend. Huge government deficits coupled with the large cash
needs of major companies whose cash flows have been declining will again put
pressure on interest rates.

And although the economy will pick up in the first half of this year, Mr Kaufman
warned it would sag again in the latter half as interest rates and inflation
rise again.

But Mr Kaufman, who is considered one of Wall Street's more apocalyptic
theologians, is far from being the most pessimistic of the gurus.

The real pessimists expect no recovery this year and only a small upturn next
year. The optimists believe the recovery will begin after the spring.

But even the optimists are increasingly worried. The recovery would be based in
large part on the effects of President Reagan's tax cuts. But now the President
is having second thoughts on his tax programme. It would also depend on the
approach the Federal Reserve will take on monetary policy.

The Fed appears to have loosened of late. But the monetary aggregates have been
rising more quickly than the Fed's short term targets. Many fear this could
prompt the Fed to become less accommodating.

The money supply figures released last Monday were a shock for the market. The
weekly aggregates rose far more than even the pessimists had expected, causing
even greater concern about Fed restraint.

Thus many sectors of the economy and corporate balance sheets are likely to
continue to labour under difficult monetary conditions.Detroit reported this
week its worst annual sales for any year since 1961. Although the car companies
hope 1982 will be tranaround year at last, a recovery in car sales is unlikely
to occur in coming months. Indeed, a Morgan Guaranty forecast suggests car
sales this year will be even lower than last. The bank expects 8.3m cars
including imports to be sold in 1982 compared to 8.5m last year.

Unemployment also continues to rise at record rates. The Labour Department said
yesterday the December unemployment rate rose to 8.9 per cent. This is the
second highest level since World War II -- exceeded only by the 9 per cent
unemployment rate in May, 1975.

The current uncertainties are prompting investment advisers to suggest clients
stay out of stocks for the time being at least. The popular "value line"
investment survey recommends in its latest issue that bonds are a "more
desirable alternative for current purchases than stocks." The survey goes on to
say "our reasoning is that business activity is slowing down, inflation is
subsiding, and high grade bonds are even more undervalued at this juncture than
common stocks."

Not that this gloom has taken all the fun out of the market. This was the week
that finally saw U.S. Steel acquire Marathon after a two month long battle with
rival bidder Mobil. But the market is now waiting for Mobil's next move, which
could include a possible raid on U.S. Steel stock or on some other oil company.

The market was also buzzing yesterday with speculation that two of the longest
and biggest U.S. anti-trust trials were about to be settled. The trial involve
the Justice Department's longdrawn out attempts to split two of the country's
biggest companies, IBM and American Telephone and Telegraph.

Settlements would be good news for both stocks. For IBM, which has been a great
nonperformer in recent years, the settlement would come at a time when Wall
Street is again touting the stock. For AT and T, one of the few stocks which
actually gained last year, it would finally remove all the uncertainty which has
surrounded the telephone companyhs future.
MONDAY 882.52 + 7.52
TUESDAY 865.30 -17.22
WEDNESDAY 861.02 - 4.28
THURSDAY 861.78 + 0.76
FRIDAY 866.53 + 4.75

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1027 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

An awful lot of Ides about

BYLINE: KENNETH MARSTON

SECTION: SECTION I; The Week in the Markets; Mining; Pg. 4

LENGTH: 594 words

LOOKING ahead to the hopedfor improvement in metal markets at around mid-year is
all very well, but we must be prepared for some pretty awful quarterly results
from the mining companies in the meantime. So beware the Ides of March and for
the matter, of the other months before summer comes.

The first of the Ides will come next week with the announcement by De Beers'
Central Selling Organisation of the world rough (uncut) diamond sales figure for
the second half of 1981.

Although the diamond market is now though to be bouncing along the bottom, the
second-half 1981 figure is unlikely to bring any comfort and will probably be
well below that for the poor first half of the year.

Then, by early-February, we should be getting the fourth quarter 1981 results
from Canada's Inco. These will bring a thumping loss because apart from the
depressed market for nickel, they will also carry the burden of the
multi-million dollar write-downs arising from the company's decision to pull out
of the loss-making battery business and to mothball its Guatemalan nickel
operations.

Meanwhile, Inco has decided further to reduce nickel production at its Sudbury,
Ontario, complex to a rate of 195m lb for 1982 compared with 220m lb for last
year.

However, the hope now is that having chopped away much of the dead wood Inco
will be in better shape during the current quarter and, of course, the company
is well placed with spare production capacity and high metal stocks to make the
most of the market recovery, when it comes.

The same can be said about the world's major platinum producer, South Africa's
Rustenburg Platinum Holdings, which is also suffering from a poor market for its
product. To make matters worse Rustenburg, along with the rival Impala, is
still quoting a price of $475 per oz for its precious metal whereas the price on
the free market has sagged to $397, slightly less than of gold.

As a general rule prices on the free market, which is supplied with Russian
platinum, are above those charged by the Western producers. Now that the
picture has changed, buyers are turning more to the free market and are keeping
their purchases from Rustenburg to the minimum contract levels.

Mr Gordon Waddell, chairman of Rustenburg, has said this week that there is no
point in reducing the producer price because this would only mean competing for
sales in a falling market; speculative holders of platinum are more interested
in reinvesting the funds elsewhere than in holding out for better prices.

So he has warned that Rustenburg's profits for the current year to August 31 are
likely to be "severely lower" than in 1980-81 when the company rather
surprisingly raised its final dividend. A cut seems to be on the cards for this
year.

Whether Impala will also reduce its final dividend for the year to June 30
remains to be seen. But at least the share price of this company allows for
such an eventuality with a yield of as much as 18 per cent on the previous
year's dividend whereas Rustenburg's current yield is only 11 per cent.

Finally, it is sad to record that Europe's biggest zinc mine, the property of
Tara Mines near Navan, County Meath, in the Irish Republic appears to be set for
an indefinite closure.

After a six-month dispute over the craftsmen's demand for a bonus scheme similar
to that of the miners, the latest wage offer has been rejected.

The dispute has already cost some £15m and its effects will mean hardship in the
towns and villages of the county if the impasse is not broken.

LANGUAGE: ENGLISH

GRAPHIC: Graphs 1 through 4, no caption

Copyright 1982 The Financial Times Limited

1028 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Holidays on borrowed time

BYLINE: Rosemary Burr

SECTION: SECTION I; Your Savings and Investments; Pg. 5

LENGTH: 1024 words

HIGHLIGHT: Fly now, pay later: Rosemary Burr looks at travel credit schemes

FLY NOW, pay later appears to be the new motto for the British travel industry.
In a bid to attract customers travel companies have inserted credit agreements
in their brochures where formerly semi-clad ladies and muscular men held pride
of place.

This year globe-trotters are being offered some holidays at lower cost than in
1981, guarantees of no extra surcharges and schemes to put off the day when the
bill for the sand, sea and sun falls due.

A few companies have offered holidays on credit in the past but these tended to
be rather down-market vacations in the UK. Now nearly every brochure includes
details of one sort of scheme or another.The cost to the customer varies
tremendously from an Annual Percentage Rate (APR) of about 27 per cent, which is
beneath credit card rates, to a hefty 50.7 per cent. Some loans are tied
specifically to holidays whereas others can be used freely as the customer
simply gets a cheque.

There are two main types of credit schemes. First there are simply instalment
loans whereby the customer gets a loan for the price of the holiday and repays
over a period of up to two years in equal instalments.

Second, comes the save-and-borrow schemes where customers can save at attractive
rates of interest and later borrow a certain multiple of their savings to pay
for the holiday.

Travel Finance has been oiling the wheels for cash-starved travellers since
1964. The offer of its services is to be found in brochures from Intasun,
Butlins, Balkan Holidays, Cosmos, Yugotours, Budget Holidays, Freshfields,
Pegasus, Sealink and Tentrek.

The rates vary according to the plan chosen and size of loan. Two of the plans
require monthly payments before the departure date. Some customers may be asked
to pay a refundable special charge straight away which may range from 5 per cent
on £160 to 2 per cent on sums above £500.

Travel Finance rates are competitive for holidays between £70 and £500 in cases
when two instalments are paid before departure and the balance in 10 monthly
payments. The APR here is between 29.1 per cent and 33.1 per cent. Otherwise,
the rates are comparatively high especially for holidays costing between £70 and
£160 repayable over six or nine months where the APR ranges from 37.8 per cent
to 43.2 per cent.

Provident Personal Credit, an arm of Provident Financial, offers loans for
holidaymakers with Butlins, Ladbroke and Freshfields. The repayments are made
weekly. A £500 loan repayable over 42 weeks carries a rate of 47.5 per cent, a
£250 loan for 96 weeks will be at an APR of 49.9 per cent and £500 for 95 weeks
has an outrageous rate of 50.7 per cent. Provident says it has higher
collection costs as payments are made weekly, but travellers would be best to
shop around for cheaper credit or take a holiday within their current budget.

Blue Sky, the British Caledonian Travel Group, has linked up with Chartered
Trust, a wholly-owned subsidiary of Standard Chartered Bank. Together, they
have come up with Holidaymasterplan, "the relaxed way to take a holiday."

In terms of the cost of credit this plan is streaks ahead of the competition.
The true rate of interest is 26.8 per cent, nearly 4 per cent below the rate on
Access or Barclaycard.

The loan must be used to pay for the cost of a holiday plus insurance. The
borrowing limits are from £100 to £1,000. All loans must be repaid within a
year. The rate for savers is one per cent beneath Finance House base rate for
example 14 1/2 per cent, which matches the best on offer elsewhere and is higher
than the rate on clearing bank save and borrow schemes.

Anyone buying a holiday from Thomas Cook can use the credit scheme run by
Forward Trust, a subsidiary of Midland Bank. The trouble is you might not know
this is available. I went into one of Cook's City of London shops and after
some tooing and froing a battered copy of the agreement was given to me. The
assistant said it was out of date, not to be used and put a line through the
application from.

The scheme works on the same principle as the Holidaymasterplan. Customers are
paid 14 per cent on monthly savings in excess of £10. The funds can go towards
holiday, travellers cheques and foreign currency.

The current APR is 31.3 per cent. Anyone holding a cheque guarantee card,
Access, Barclaycard, American Express or Diners Club card can get up to £1,005
credit instantly. The maximum loan is £2,400.

Mercantile Credit, an arm of Barclays Bank, has teamed up with Hogg Robinson,
the travel agent and British Airways. The cost of borrowing is fairly
reasonable.The true rate of interest on loans is 30.6 per cent, the same rate as
Access and Barclaycard.

The Holidaymakers Budget Loan Plan applies to all holidays bought from Hogg
Robinson Travel. Loans from £200 to £2,000 are available. The savings rate is
currently 14 1/2 per cent. Customers get a cheque directly so the money can be
spent on travel, clothes or equipment.

The scheme run in conjunction with British Airways is similar. Called Payway,
the plan allows customers to borrow up to £5,000. Instead of getting the loan
in the form of a cheque, vouchers are given. These vouchers can be used to pay
for British Airways travel facilities, Sovereign, Enterprise, Speedbird,
Stopover Holidays, Free Wheeler Fly Drive, Associated Hotels, Avis Car Rental
and British Airways air tickets. The rates are the same as the Holidaymaker
plan.

If you need credit for a holiday, the first stop should be your bank manager as
an overdraft is the cheapest form of credit. Failing this the Blue
Sky/Chartered Trust scheme comes up trumps.

The next move should be to see whether you can pay with your credit card. It
may be possible to raise your spending limit to cover your holiday, but remember
a credit card can be very useful abroad so try to leave yourself some leeway.

Finally, if you are tempted by any of the other schemes don't assume the rate in
the brochure is necessarily the rate you will be charged now. Some brochures
were printed months ago and the rates have since changed.

LANGUAGE: ENGLISH

GRAPHIC: Picture, no caption; Illustration, no caption

Copyright 1982 The Financial Times Limited

1029 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Third time lucky in Tokyo

BYLINE: JOHN MAKINSON

SECTION: SECTION I; Your Savings and Investments; Unit Trusts; Pg. 5

LENGTH: 633 words

UNIT TRUSTS investing in Japan scooped up almost all the awards at the
prize-giving for best performance in 1981. For the second successive year,
gains on the Tokyo stock market left them well ahead of almost all the
competition.

Last year admittedly had its unsettling moments. The Nikkei Dow Average, which
pushed above 8,000 in mid-August, collapsed to almost 7,000 in the wage of the
world-wide bourse shake-out six weeks later. But the index subsequently
recouped most of those losses to close the year at 7,682.

For sterling investors, the underlying gains were magnified by the appreciation
of the yen, particularly towards the end of the year. In the course of 1981,
the yen strengthened from 482 to 419 to the pound.

The main impetus behind the market's advance was again the weight of foreign
investment. The buying spree tailed off slightly in the second half of the
year, when many of the favoured blue chip technology stocks suffered steep
falls, but non-residents were still net purchasers of about Y740bn worth of
equity over the full year.

Japanese securities companies are confident that the two year rally from the
second oil crisis of 1979 will be sustained for a further 12 months. Pessimism
has rarely been their strong suit, so forecasts should be treated with some
caution.

Daiwa Securities' estimate of a market range between 7,650 and 8,800 is fairly
representative. "Should the world fall into a more serious recession than
expected, and money get extremely easy worldwide, the Tokyo maket would
challenge 9,000 points," Daiwa says.

The Nomura Research Institute envisages a similar picture, with a substantial
increase in corporate profits being discounted early in the year and the market
then remaining fairly flat until the last quarter when Nomura expects the Nikkei
Dow to trade in the 8,800-9,000 range.

The optimism is grounded on the strong fundamentals of the Japanese economy.
The optimism is grounded on the strong fundamentals of the Japanese economy.
The government is forecasting a real growth rate of 5.2 per cent in the fiscal
year to March 1983, compared with a likely outcome of about 4 per cent in the
current year.

The official figure is well above the forecasts of private institutions (Nomura
is looking for 3.9 per cent and Daiwa for only 3.5 per cent) but there is little
doubt that growth will be very high by OECD standards.

On the basis of current account and inflation differentials, the yen can be
expected to appreciate against both the dollar and sterling this year. As
Morgan Guaranty expresses it, "an exchange rate of 195-205 per dollar would be
much more appropriate than the recent 215-220 range." The Japanese authorities
may be happy to see a steady appreciation of the yen as a way of scaling down
its embarrassing current account surplus.

If the yen does move above the 200 per dollar level, securities companies expect
U.S. pension funds to start investing more seriously in the Tokyo market.

Until now, they have been testing the water. Since OPEC investors, the biggest
buyers of the past two years, are now constrained by the weakness of the oil
price and many European institutions probably regard themselves as fully
invested, the U.S. represents the main hope for continued foreign buying.

The fundamentals for Japanese equities look sound, but the market is already on
a demanding rating and the technical position is worrying. Margin debt remains
at a very high level and Japanese companies, which helped provoke the September
sell-off by flooding the market with new equity, may be tempted to do the same
again.

Moreover, as the autumn showed, Tokyo is by no means immune from the influence
of foreign economies burdened with high interest rates and low growth.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1030 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

No smoking . . . the best policy

BYLINE: Eric Short

SECTION: SECTION I; Your Savings and Investments; Pg. 5

LENGTH: 301 words

HIGHLIGHT: Eric Short examines another good reason for giving up cigarettes

NORWICH UNION, one of the UK's major life companies, has joined the growing
number of companies offering premium discounts to policyholders who are
non-smokers. It is prepared to cut premiums by 10 per cent on its latest
protection contract -- the Triple Option Plan -- if the policyholder has not
smoked for the preceding 12 months.

This socially desirable move by those life companies which offer the discount is
paying off in marketing terms. Guardian Royal Exchange saw its sales of term
contracts improve 25 per cent since last September when it introduced the
discount while Scottish Mutual, the UK pioneers in the field also saw its term
business rise substantially last year following its improved terms for
non-smokers.

The marketing effects of the discount on protection contracts are considerable.
Even a 10 per cent cut can turn an average premium rate into a market leader.
All the policyholder has to do is to sign a statement to the effect that he does
not smoke and has not done so for the previous 12 months.

Manufacturers Life Insurance Company (UK) has taken a much more adventurous line
in its new non-smokers discount. Premiums on term assurance can be as much as
30 per cent lower for non-smoking and is available to all but cigarette or small
cigar smokers.

But Manufacturers Life has not stopped there. Investors taking out with-profits
contracts will qualify for preferential bonus rates if they are non-smokers to
reflect their higher life expectancy and the company has emphasised that the
difference in bonus scales will be significant.

While discounts for non-smokers are likely to grow simply from the marketing
implications, one cannot yet expect to see life companies giving discounts for
other groups with higher than average life expectancy.

LANGUAGE: ENGLISH

GRAPHIC: Illustration, no caption

Copyright 1982 The Financial Times Limited

1031 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Sweet charity for Mousehole

BYLINE: Tim Dickson

SECTION: SECTION I; Your Savings and Investments; Pg. 5

LENGTH: 573 words

HIGHLIGHT: Tim Dickson reports on the Penlee lifeboat disaster fund

THE HAPPY ending to the row over cash contributed to the Penlee Lifeboat
Disaster Fund highlights important differences between charitable and private
trusts.

A trust is a legal entity which is brought into existence when a person (the
settlor) transfers assets to trustees for the benefit of a third party (the
beneficiary). Trusts are commonly created by people who are still alive or they
can be set up under a will where part of the deceased's estate is put aside for
the benefit of heirs.

The tax rules even for an apparently simple trust can be a trap for the unwary
as the organisers of the near £2m fund launched by Penwith District Council
unwittingly discovered.

Most donors who sent off money as a spontaneous reaction to the Mousehole
tragedy no doubt thought that their contributions would be passed on without
fuss to the relatives of the dead men.

The position was complicated, though, because the fund turned out to be more
than just a simple post box for redirecting the public's generosity. Trustees
were appointed at an early stage and it was not made clear until this week on
what terms the money was to be distributed.

A separate fund, organised by local fishermen, emphasised at the outset that it
was no more than a collecting bowl for eight named beneficiaries and seems to
have asvoided running into any tax and legal difficulties.

The apparently obvious solution for the local authority fund was to register as
a charity, a status which confers significant privileges. There is, for
instance, no question of gifts to such a trust attracting capital transfer tax
while the trust itself is exempt from tax on income, capital gains or
distributions to beneficiaries.

The big drawback, however -- and the major cause of the row -- is that the
trustees of a charity have to administer the money in accordance with a complex
body of charity law. In effect the money could have been used "to relieve
poverty," but probably not suddenly to enrich eight families to the tune of
£1/4m each.

Most people, notably the trustees, wished all the cash (however much) to end up
in the hands of the families and for this reason the organisers have declared
the fund a private trust. The size of any private trust "hand out" is not
restricted by law and though such a vehicle is liable to certain types of tax,
it is now widely agreed that any liability in the case of Penlee will be
minimal, if not non-existent.

Bearing in mind the various CTT exemptions for individuals and the cumulative
total lifetime threshold of £50,000, it is highly likely that any CTT would in
any case be paid by donors. Such a possibility seems to have been removed
completely by a Treasury announcement on Wednesday that contributors to the
Penlee fund would be "indemnified against a liability for CTT."

Although there were mistaken reports to the contrary, no CTT will be payable by
the trust in passing on money to the recipients. This might have been the case
if the trust had been a discretionary settlement but even then an obscure clause
in the 1975 Finance Act would have come to the rescue. If the money has been
invested by the trustees, tax will be payable on the income.

Whatever the families receive as income, incidentally, whether from the fund or
from their own investments, will attract income tax. The position would be
identical in the case of a charitable and private trust.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1032 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Tax position on redundancy

BYLINE: BY OUR LEGAL STAFF

SECTION: SECTION I; Your Savings and Investments; Finance and the Family; Pg. 5

LENGTH: 137 words

During the current financial year, it is necessary to draw a redundancy payment
of £23,000 (including payment in lieu of notice) and also commute a lump sum of
£9,000 from an approved pension scheme. What is the tax situation under these
circumstances?

The tax position, on the bare facts outlined, is that the £23,000 is taxable to
the extent that it exceeds the statutory redundancy payment, probably.

However, you may well escape tax by extrastatutory concession. You should send
an SAE to the Inland Revenue Public Enquiry Room, Somerset House, Strand,
London, WC2R 1LB, and ask for a copy of SP1/81 (Nonstatutory redundancy
payments).

No legal responsibility can be accepted by Financial Times for the answers given
in these columns. All inquiries will be answered by post as soon as possible.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1033 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Transfer exempt from CTT

BYLINE: BY OUR LEGAL STAFF

SECTION: SECTION I; Your Savings and Investments; Finance and the Family; Pg. 5

LENGTH: 228 words

My wife and I, aged 69 and 70, are joint owners of our £40,000 house, and we
have share-holdings in our joint names worth about £45,000.

Would it be possible for us to transfer ownership of the house to our son by a
series of annual shares each equal to our joint annual entitlement to exemption
from Capital Transfer Tax? If so, would this involve frequent, possibly annual,
revaluations of the house? And how should we deal, in our wills, with our
shareholdings so as to minimise the liability to Capital Transfer Tax?

While this has not yet been tested in court, we believe that it is possible to
transfer an equitable interest equal to a proportion of the value of the house
in each of a number of years in such a way as to fall within the annual
exemptions. This would require a reasonably accurate estimate of the value of
the house each year; and it must be emphasised that the validity of the scheme
is untested. If that is done you can then bequeath your shares so as to take up
the £50,000 exemption. Of course at present your total capital is under
£100,000 and so the exemptions would prevent any charge to tax if your wills are
not in favour of the surviving spouse.

No legal responsibility can be accepted by Financial Times for the answers given
in these columns. All inquiries will be answered by post as soon as possible.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1034 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Properties and companies

BYLINE: BY OUR LEGAL STAFF

SECTION: SECTION I; Your Savings and Investments; Finance and the Family; Pg. 5

LENGTH: 179 words

I am the beneficial holder of the shares in a private investment company which
owns a number of properties. I have three children. I wish to leave each of
them one of the properties owned by the company on my death.

Could you please advise me how I can arrange this without, my executors having
to liquidate the company which owns other properties which my wife would retain
in the company? Could the company enter into some contract now but effective
only on my death or could I create a special class of share (redeemable
preference or debenture) by which I could achieve my ends? I do not wish to
transfer the properties to them until my death.

It would be difficult to achieve what you have in mind through the medium of one
company. If, however, you formed subsidiary companies to hold the properties in
question you could easily dispose of the shares in the subsidiaries by your
will.

No legal responsibility can be accepted by Financial Times for the answers given
in these columns. All inquiries will be answered by post as soon as possible.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1035 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

New bell as an alteration

BYLINE: BY OUR LEGAL STAFF

SECTION: SECTION I; Your Savings and Investments; Finance and the Family; Pg. 5

LENGTH: 177 words

For many years the five bells in our church tower were not rung because the
frame was unsafe. An appeal raised enough to re-cast the existing bells,
purchase a sixth, and replace the old frame with steel supports for the old
bells, plus the new one. We are being charged VAT on the lot, despite the fact
that quite a large amount of the money spent has been on the sixth bell. Do you
think Customs and Excise are right to charge VAT on the whole thing? Would you
advise an appeal?

The only way the cost of the sixth bell could be zero rated for VAT would be if
it could be considered to amount to the alteration of a building. As the bell
is additional and not a replacement such an argument does have some merit.
However if the Customs and Excise refuse to zero rate the transactions we would
not like to say what your chances would be of winning if the matter went to
appeal.

No legal responsibility can be accepted by the Financial Times for the answers
given in these columns. All inquiries will be answered by post as soon as
possible.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1036 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Exchange rates and tax

BYLINE: BY OUR LEGAL STAFF

SECTION: SECTION I; Your Savings and Investments; Finance and the Family; Pg. 5

LENGTH: 375 words

How is my capital gains tax liability computed if: --

1 -- I buy U.S.$ , then buy a U.S. stock, sell the latter at a profit and keep
the proceeds in $ . Is there a statute or Inland Revenue practice determining
the exchange rates used for conversion, given that even on a particular day,
exchange rates quoted might have significantly and the rates published in
different journals would differ?

2 -- Similarly, how would dollar dividends retained as dollars be treated for
income tax?

3 -- Suppose I buy Deutschemarks with £s, then switch into $ directly from DM.
Is it correct that there would be no capital gains liability till I reverse the
transaction into DM or £s?

1. The cost/proceeds of stock bought/sold should be valued at the rate of
exchange for the date of the purchase/sale contract (not settlement day). If
U.S.$ are credited to a bank account (as distinct from an account with a
stockbroker, etc.), the credits and debits should be valued at their respective
dates, for the purpose of calculating the gains and losses on the bank balance
(so long as the account is not overdrawn), under section 135 of the Capital
Gains Tax Act 1979. Foreign currency gains and losses are subject to different
rules from gains and losses on foreign currency bank balances: the deposit of
U.S.$1,000 with a bank would constitute a chargeable disposal of $1,000 U.S.
currency, in consideration of a debt of U.S.$1,000 due to you from the bank.
Currency is deemed to be located where it is actually located, but all bank
balances (in credit) are deemed to be located in the UK, under section 18(4)(c)
of the CGT Act, generally speaking. The closing prices given in the FT will
suffice for most practical purposes.

2. Dividends should be valued at the London buying rate for the days on which
they were payable, generally speaking, under section 122(1)(a) of the Income and
Corporation Taxes Act 1970.

3. No; every link in the chain will produce a chargeable gain or allowable
loss: DM -- DM bank balance -- DM -- U.S. $ -- U.S.$ bank balance -- U.S.$ --
sterling, presumably. In practive, it is usually possible to agree a
rough-and-ready basis of computation with one's tax inspector, to keep things
fairly simple.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1037 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

How to buy a pub

BYLINE: BY JUNE FIELD

SECTION: SECTION I; Property; Pg. 6

LENGTH: 1155 words

IF YOU ARE 38 years old and your only capital is your house (worth £30,000 after
redeeming the mortgage), plus £10,000 in investments and savings, can you buy a
pub?

Presuming that you can sell your home and top up your cash in hand with a
10-year loan of some £30,000, then yes, you can buy a Free House for around
£65,000 or so, plus stock at valuation, claims the latest book on the subject,
Thinking of Buying a Pub?

Written by Malcolm McDonald and Bill Price, and published by licensed trade
agents Christie and Co and the National Union of Licensed Victuallers, it
presents a case history of a John Jones and his wife who want to live in and run
a pub, probably with the aid of a full-time kitchen helper, part-time bar staff
and a cleaner. The strategy of mark-ups (profit margins) operating essentials
(licences, stock control and so on) are all carefully detailed, as well as what
to do if your bank turns down an application for a loan.

There are also pertinent reminders that running a pub is one of the most
mentally and physically demanding of all occupations, which goes on for seven
days a week for 52 weeks of the year.

And successful pubs are run by families -- "without a full commitment from both
partners, mediocrity and unhappiness eventually set in. . . . A special kind of
tolerance and compatability is called for." (My italics.)

There are three types of pubs: Free Houses (of which there are around 24,000,
growing as the brewers sell off unwanted houses), where the licensee owns the
pub, purchasing stock from whomever they choose. Some 29 per cent of
brewery-owned outlets are managed, which means that the company takes not only
the wholesale but the retail profit, while the remainder are run by a tenant who
rents the premises from the brewers from whom the contract to buy their
supplies.

Loans from brewers can sometimes be negotiated at favourable interest rates.
But as Major R. L. Otter-Barry, consultant to hotel and licensed property agents
Robert Barry and Company, observes: "In return the brewers usually stipulate
some form of trade tie. The amount of the loan available is usually related to
barrelage, and is likely to be considerably less than the sums available from
the banks, but may on occasion be unsecured. Breweries can thus be a useful and
inexpensive source of supplementary finance if the business has a good volume of
liquor sales, and prospective borrowers should approach the brewery of their
choice direct."

The Reliance Consumer Credit (RCC), say they have facilities to obtain loans up
to about two-thirds of the purchase price, which can be increased with
additional security, which on freehold businesses can be borrowed up to a
10-year period, probably shorter for a leasehold depending on the unexpired term
of the lease.Interest rates are between 4 1/2-5 1/2 above finance house base
rates for a freehold, 6-7 1/2 per cent for a lease.

In spite of set-backs in the general property field, Mr James Nairn, chairman of
Brodie Marshall and Company, specialist agents and valuers to the catering and
hotel industry, reports improvements to trading, and a good turnover in certain
Free Houses, wine bars and restaurants, particularly where there is good quality
living accommodation. Sales to what he calls "novice-buyers" are also on the
increase. "This begins to show us that the recession has definitely ended,
because over 95 per cent of the pubs, hotels and restaurants normally sold are
to established hoteliers, restaurateurs, etc.It is only when the market appears
to be improving that inexperienced buyers take the plunge.

"The attraction of pub and hotel keeping is not that it is just for the
professional; the truly dedicated amateur can often become an example to others
in the trade. Often, these new hoteliers will look back at the shortcomings
they experienced when they were the guests, and vow to put them right when they
become hoteliers or publicans."

But the need for a professional approach to buying a business in these difficult
times is stressed. "You must ensure that you really know the current levels of
trade, and not just accept the audited accounts which will be 18 months out of
date. Even in this industry, many who overcharged, overspent or who lacked
dedication, have found their trade drifting away from them."

Brodie Marshall are also associated with a specialist book, Miles Ouest's How to
Buy Your Own Hotel, which has sold over 7,000 copies.

Brodie Marshall, in conjunction with the Hotel and Catering Industry Training
Board, is also involved in the Small Business Services' "Thinking of Buying Your
Own Hotel? Pub?Restaurant?" conferences. The next one is at Preston on January
29, with one in London on March 26. Training adviser Sheila Marsh told me that
the aim is to get one over the first hurdle of making up your mind to run a
hotel, guest house, tea shop, public house, restaurant or wine bar. "At these
conferences, the facts about the industry are presented realistically by
proprietors in the industry who have been through it all themselves."

According to the commercial business transfer department of Whiteheads, southern
counties licensed property specialists, demand for free houses below £150,000
now outstrips supply in their area.

Partner Mr John Watkins attributes this to the number of people coming out of
industry with a golden handshake or redundancy payment, which with a fairly
substantial equity on their freehold home, plus additional funds from other
sources, raises sufficient capital. "The way of life of a publican is usually
seen as an attractive one, so there is always a steady demand for free licensed
premises. At the end of the day, however, it may be found to be much harder
work than anticipated and so the cycle of exchange continues. A lot of
publicans nowadays are also looking to become master of their own destiny, and
are coming out of brewery tenancies."

(For what is currently available in Licensed freehold houses in East Sussex and
Hampshire from £50,000 to £350,000, contact Mr Watkins, Whiteheads, 52, Church
Street, Hove, East Sussex.)

The book Thinking of Buying a Pub? £4.50, plus video tape of a dozen or so
hotels and pubs, £6.50, from Mr David Rugg. Christie and Co. 32, Baker Street,
London, W1, who will also send free a licensed trade listings booklet on
properties in England, Scotland and Wales plus RCC finance and insurance
leaflets: Free current Hotel Market report and England and Scotland property
details from Mr A. H. F. Guillebaud, Robert Barry and Co, Cotteswold House,
Gloucester Street, Cirencester: Book How to Buy Your Own Hotel, £6 from Mr J.
Nairn, Brodie Marshall and Co, 66. Bolsover Street, London, W1, plus property
details: Conference details and free leaflets Sheila Marsh, HCITB, P.O. Box 18,
Ramsay House, Central Square, Wembley, Middlesex.

LANGUAGE: ENGLISH

GRAPHIC: Picture, The Cardinal Wolsey, Hampton Court, where experience is
probably essential for a good mix of trade. Offers around £100,000 for a tied
lease. Details James Nairn, Brodie Marshall and Co., 66 Bolsover Street,
London, W1 (01-388 2272), who will also send, for £6, a copy of "How to Buy Your
Own Hotel"

Copyright 1982 The Financial Times Limited

1038 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Putting your garden into the computer

BYLINE: ARTHUR HELLYER

SECTION: SECTION I; Gardening; Pg. 6

LENGTH: 1068 words

IT HAD TO HAPPEN. Sometime, somewhere, somebody had to apply the unfaltering
memory of the computer to the teasing task of garden planning. The real
surprise is that first in the the field should be Hurst Gunson Cooper Taber,
whose name will probably be totally unfamiliar to most gardeners. This is
because the great Essex seed firm has hitherto preferred to keep discreetly in
the background, confining itself to breeding and wholesale production and
distribution of seeds to be sold through independent retail outlets. True its
cheerful "Hurst Garden Pride" seed packets are familiar enough since they are
sold in a great many shops and garden centres, but I doubt whether many
purchasers have realised precisely who produces them. Experience has taught
them that the name on the packet is a good guarantee of quality and that is
about as far as it has gone. Hurst is quite satisfied to remain in the
background and has no desire to become directly involved with the final
customer.

The veil has now been cast aside, and Hurst is positively asking for mail from
amateurs, not for the purpose of selling seed direct to them but to guide them
in the best use of their gardens or allotments for vegetable growing. To this
end their experts have programmed a computer to answer all relevant questions
with accuracy and spped. All the inquirer has to do is to botain a Hurst Garden
Gro-Plan form from any shop or garden centre selling Garden Pride seeds, fill it
in and post it, with £2, to Hurst Gunson Cooper Taber at Witham in Essex. The
form seeks information about the size and shape of the plot to be used for
vegetables, its aspect, the nature of the soil and the particular vegetable
preferences of each member of the family. This information is then fed into the
computer, which imediately produces an answer complete with plan of the plot
showing where each vegetable is to be grown, how much room it will require, how
many seed packets will be needed and what varieties are recomended. This is
sent to the inquirer, plus a 50p voucher for Garden Pride seeds and a copy of Dr
D. G. Hessayon's excellent book, "Be Your Own Vegetable Doctor."

As far as I can see, about the only thing that Gro-Plan does not try to do is to
suggest rotations of crops in subsequent years, and this is probably just as
well because it has always seemed to me to be almost impossible to follow any
strict rotation in the very limited space in most gardens available for
vegetables. A measure of improvisation seems essential, and the most one can
hope for is to prevent any vegetable returning to precisely the same place for
three years. Even that sometimes take quite a lot of contriving.

Since this is a serious attempt to encourage garden owners to grow more
vegetables, it deserves serious consideration. Any computer, however advanced,
can only be as good as the program fed into it and here a first study of the
Gro-Plan suggests that some fine tuning remains to be done. The plan I have
received is for a plot measuring 16 by 25 ft to supply three people with beans,
peas, beetroots, carrots, lettuces, onions, sweet corn, spinach, cabbage and
sprouting broccoli but with the proviso that only one member of the family like
sprouting broccoli and only two like onions and cabbages. The plan allows for a
12 ft double row of Runner Bean Mergoles, 60 ft of Dwarf Bean Loch Ness, 32 ft
of Pea Greenshaft, 16 ft of Beetroot Long Blood Red, 28 ft of Carrot Early
Nantes, 19 ft of Lettuce All The Year Round, 25 ft of Spinach Monrach Long
Standing, 25 ft of Cabbage Holland Winter E.40 and 13 ft of Broccoli Purple
Sprouting.

Clearly so small a plot cannot meet all the requirements of a family of three
even for the limited range of crops specified but I doubt whether the computer
has come up with the best compromise.In particular I question the adequacy of 19
ft of lettuce, calculated to produce only 25 heads, for the requirements of
three people during the summer. I think that more could have been fitted in by
allowing the earliest sowing to occupy ground to be used later for sprouting
broccoli. Also it seems to me that too much space has been allocated to dwarf
beans which do not stand well and really would not be needed once the runner
beans started to crop freely. There also appears to be an undue space given to
spinach and this is placed so awkwardly that an area of 14 sq ft is left
unoccupied by any crop. It would seem more sensible to use this vacant ground
for some of the onions which are scattered about the plot in a rather random way
and to give more space to lettuce.

All these are relatively minor matters which anyone with a small knowledge of
vegetables and a little commonsense could adjust for themselves but since the
Hurst Gro-Plan is directed primarily at new gardeners it would be wise to leave
as little as possible to imagination. Clearly, computerised planning for
vegetables is possible but it may take a little experience to get it quite
right.

What are the prospects of the computer invading other aspects of garden
planning?It should not be too difficult to program machines to select and place
plants for herbaceous, mixed or annual borders, to deal with bedding out, to
plan rose, water and rock gardens and other such limited features.

But could a computer tackle the much more complex problems connected with the
design of a complete garden? I have little idea, since I find computers almost
incomprehensible but because quite ordinary machines are apparently capable of
playing a very competent game of chess is seems likely that a big computer could
make some sort of shot at garden planning provided the programming was well
done.

I am told that the best chess computers are programmed by world famous grand
masters. Where, I wonder, are the comparable brains to program a machine for
garden planning? It would probably require a team well versed in the
availability of plants as well as the complexities of garden design since it
would be of little use churning out thousands of plans requiring plants that are
in short supply. A task, maybe, for a group of firms, best of all a group of
wholesalers who could guarantee to keep nurseries and garden centres supplied,
whatever the demand. It is an intriguing thought but one fears the result might
be to make gardens even more alike than they already are.

LANGUAGE: ENGLISH

GRAPHIC: Illustration, no caption

Copyright 1982 The Financial Times Limited

1039 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Games and the greed factor

BYLINE: BY TREVOR BAILEY

SECTION: SECTION I; Sport; Sponsorship; Pg. 6

LENGTH: 1027 words

THE RECENT freeze-up has been a serious blow to most league soccer clubs,
causing both fixture congestion and additional cash flow problems at a time when
many are strugglings for survival. This is in sharp contrast to county cricket
club treasurers, who throughout the 1960s wore a perpetual scowl as they fought
to keep out of the red. They can now afford to smile.

Although the financial renaissance experienced by first class cricket in England
can to some extent be attributed to the introduction of the limited overs game,
the real savious has been sport sponsorship. The game's administrators
appreciated the necessity for additional revenue long before football, which
commanded much bigger gates.

Soccer administrators were slow to appreciate the necessity of attracting
sponsorship. In an ideal world this might be the case, but the truth is that no
professional sport (and many still parading as amateur, like athletics) simply
could not function in its present form without large sums provided by commercial
firms. It is significant that the number of spectators at a major boxing match
is not as important as the number of overseas television stations which are
prepared to show it.

Modern sponsorship in cricket began in 1963 with the Gillette Cup, which
initially cost only £6,500. It was an instant success and set the pattern for
the future.

This early move by cricket into commercial sponsorship has resulted in the major
schemes being channelled through the Test and County Cricket Board mainly for
the benefit of the 17 first-class counties. Soccer not only took longer to feel
the need for sponsorship but also developed it on different lines.

Whereas in cricket it is largely based on substantial financial central
agreements with the TCCB, which has also maintained firm control over the limits
of local sponsorship, football started with individual club sponsorship. The
main reason for this was first that there are two bodies governing football in
England, the FA and the Football League.

Secondly there are 92 league clubs as distinct from 17 first class counties
which means that even an enormous central sponsorship, like the £1m being asked
for the League Cup, is quickly swallowed up. As a result, although football
sponsorship is at present in excess of £2.5m as against the £1m cricket receives
from its major central sponsorships League football is economically unsound.

Sponsorship has benefited sport enormously. But with large sums and six
different parties involved, problems are inevitable. Each of the six parties
has its own temptation. There is what might be called "the greed syndrome."

Sponsorship provides additional incomes for players directly or indirectly and
there is a tendency for some to regard this purely as a means of extra revenue
for themselves without much, or any thought about the requirements of the sport
which provides them with their livelihood, or about the sponsor.

The middlemen have become an essential link in the sponsorship circle. Without
their experienced service both the sponsor and the sport would often lack the
resources and the expertise to develop a sponsorship successfully. The best
middlemen -- who come in various forms and sizes, agents, sport brokers, PR
organisations and promotion specialists -- possess a detailed knowledge of both
the sport and marketing.

However, with so much money around, there is a temptation for them to take too
large a share. From the sports viewpoint there is a danger of dictation by the
middlemen who control top performers.

For example, the manager of snooker star "Hurricane" Higgins recently prevented
him from playing in a tournament because the "appearance money" was not enough.

The controlling sporting bodies are primarily interested in the money not the
sponsor so they are liable to be tempted to accept the highest bid without
reference to other criteria and often fail to give their full support to the
promoter. Another contentious point is the amount of money paid by television.
In the case of soccer, those clubs who already receive considerable revenue for
shirt advertising are understandably annoyed that these cannot be worn for
televised matches. If they were, the club would receive far more.

Television and radio find sport a cheap and rewarding form of family
entertainment. Sport is unlikely to cost television more than £25,000 per hour
as against around £110,000 per hour for a play or documentary. Broadcasters
know that sport needs to be televised to obtain some types of sponsorship and
therefore television is in a position to use this as a weapon to reduce its fee
to the sport concerned. This applies especially to minor sports.

Sponsors can easily become too eager for extra publicity and harry the media who
owe them nothing; indeed the media stand to lose money as sports sponsorship is
an expensive substitute for buying advertising space in the newspapers, or on
the box or radio. A cautionary example was provided by the snooker match where
the advertising banners almost outnumbered the 22 balls on the table.

Finally, the sponsorship company's employees see the amount of money being spent
on sport. And they sometimes demand their share, although they would never
think of claiming a "cut" from normal advertising expenditure.

FORTHCOMING EVENTS

Soccer: Football Lague Cup, 5th round, Jan. 13.

Cricket: India v England, 5th Test (Madras), Jan. 13-18.

Rugby: Scotland v England (Murrayfield) and Ireland v Wales (Dublin), Jan. 16.

Hockey: World Cup, men (Bombay), until Jan. 12.

Skiing: World Cup, men's slalom (Bad Wiessee, Germany), Jan. 12. World Cup,
women's downhill and giant slalom (Grindlewald, Switz.), Jan. 13-14. World Cup,
men's downhill and slalom (Kitzbuhel, Austria), Jan. 16-17. World Cup jumping
(Sapporo, Japan), Jan. 17.

Bobsleigh: British four-man champs. (Switz.), Jan. 11-17.

Karate: British senior indiv, champs. (Crystal Palace), Jan. 17.

Rallying: Monte Carlo Rally (to Monaco), Jan. 16-23.

Sailing: World champs, Lightening class (Pucon, Chile), Jan. 10-16.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1040 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Yes, there's a secret to skiing

BYLINE: BY ARTHUR SANDLES

SECTION: SECTION I; Sport; Pg. 6

LENGTH: 482 words

THAT FIRST ride of the season on the ski lift is always a mixture of pleasure
and trepidation. Will I remember how to turn? Can I ski ice? If it is so cold
and grey what am I doing here anyway? Then comes the first run and, with luck,
the trepidation goes and only the pleasure remains.

With luck. For most of us skiing remains a perpetual hunt of that little secret
which will unlock the door to good skiing. Everyone seems to have their hints,
from "bend ze kneez" onwards. "Steer with your shoulders," they cry; "Get your
weight on to the balls of your feet"; "Point your knees where you want to go";
and "never look towards the mountain." All very well, of course, but are any of
them The Key?

No. The real key is a lesson which no one ever seems to give me and yet it is.
I believe, something which every novitiate should have engraved upon their skis
before ever setting foot on snow.

The secret of skiing is this. There is a point in every turn when you are
facing directly down the mountain. Understand that, come to terms with it and
you are on the road to ski success.

If you doubt the accuracy of this rule watch other skiers. The god ones will
show no fear of facing downhill, in fact they will seek out turn after turn,
lingering almost at the moment when those skis are pointing straight down the
fall line. Now see the poorer skiers For them it is a constant battle to avoid
pointing downhill. Turns are jerky manoeuvres from one traverse position to
another.

Often skiers will shy so violently away from that moment of truth that they turn
right round and fall facing up the mountain.

Overcoming, or rather partially overcoming, fear of facing downhill, is much the
same as overcoming the fear of putting your head under water when swimming. It
is possible to learn to swim without ever getting your head wet, but it does
make the whole process immeasurably more difficult.

It is, of course, a rare person indeed who completely overcomes worry about
pointing down mountain sides. Face me with a steepish icy slope, particularly a
narrow one, and I rock back on my heels. Whatever the brain says, the body
turns to jelly.

So, even using the secret key, your skiing will not turn into World Cup class
overnight. But you will find it easier to keep your eyes on where you are
going, which is usually downhill, and move you a notch or two up the ski class
list.
SNOW REPORTS
Snow depth
Resorts in cm
Min Max
Abetone 30 100
Bardonecchia 120 230
Bormio 100 130
Canazei 30 70
Cervinia 20 400
Claviere NR
Cortina 50 130
Courmayeur 145 265
Livigno 100 130
Madesimo 120 210
Madonna di Campiglio 130 240
Macugnaga 60 270
Ortisei 30 70
S. Martino Castrozza 70 100
Sauze d'Oulx 50 80
Selva Valgardena 70 145
Sestriere 80 100
Vipiteno 20 100

LANGUAGE: ENGLISH

GRAPHIC: Picture, Facing downhill: is it the key?

Copyright 1982 The Financial Times Limited

1041 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

From bird life to Himalayas

BYLINE: SYLVIE NICKELS

SECTION: SECTION I; Leisure; Travel; Pg. 7

LENGTH: 1085 words

SELECTING SPECIAL interest tours from the range currently available for 1982 is
an invidious business. What, indeed, to choose from the well-established old
favourites and the battery of bright ideas that materialises each season? So I
can only apologise to those who may feel left out and launch into what must be a
highly arbitrary choice.

It may as well begin by promoting one of my own hobby horses through the
well-established birdwatching (and botanical) tours of Peregrine Holidays, at
the same time endorsing their impassioned plea against the casual eating of
Mediterranean delicacies which may turn out to be one of our own nightingales or
black caps. "Migrant warblers in particular," they write, "are limed on twigs
when exhausted, dropped (often alive) into boiling water, then skinned, trimmed
and pickled like walnuts." This practice has caused them to drop Cyprus from
their programme, but they have an excellent range of spring and autumn
arrangements especially in Crete and Greece, all of course accompanied by an
experienced enthusiast. Further afield is their 12-day tour to India next
autumn (provisionally £1,100).

Sunbird, who have entered the ornithological field more recently but have
collected an impressive team of tour leaders, have pretty well a world-wide
coverage: the North Yemen in March, for example (about £1,550), and Ecuador and
Galapagos in July/August (about £2,495), Most of their European tours are in the
£500-£800 range. In Britain, I have heard enormously enthusiastic reports from
participants in courses run by the Field Studies Council in its nine residential
centres; subjects cover (in some depth) most imaginable aspects of natural and
local history, archaeology, arts and crafts. The courses are usually three or
seven-days, the latter averaging £95-£105 all-in

Some specialists combine various interests. Ramblers Holidays, who have taken
large numbers of us trudging through some of the remotest and love-liest parts
of Europe and beyond for over 30 years, feature flowers and photography in a
number of arrangements. A new one in 1982 is to Bulgaria, combining two
mountain areas with two departures in June and July (£364 for two weeks). Their
carefully graded walking tours range far across west and east Europe, but also
extend to India, Nepal and Peru.

A small but very active specialist company who have been in the business for 11
years is West Himalayan Holidays. Their 1982 programme features both cultural
and trekking tours through the valleys and passes close to the roof of the
world. One that sounds unusually interesting next September is a 27-day trip
crossing the Himalayas south to north in the company of the Gaddi shepherds on
their centuries-old migration routes. The cost in £925 plus air fare.

Most of the tours require a sense of adventure and physical fitness, but not
necessarily mountaineering experience.

Newcomer to the keep-fit field is the otherwise very old-established firm of
Galleon who are promoting a whole range of activity arrangements in Bude,
Cornwall. Among them is one specially designed for the business executive, a
seven-day Kryptex course costing £250 all in, starting and ending with an
individual assessment and aiming to "develop initiative, physical fitness and
resourcefulness among executives away from their usual working environment."

Still in Britain, Countrywide Holidays have a very wide range of special
interests in nearly a score of centres, based on an impressive 90 years of
experience.Walking, field studies, country dancing and heritage tours are
strangly featured, sometimes with two themes (such as walking and music)
combined in one holiday.

Small groups of family or friends, not all necessarily wanting to do the same
thing, might consider the offers of Take Five, the recent offspring of Saga
Holidays, the "senior citizens" specialists. Take Five caters for all ages; the
emphasis is on self-catering and, in the case of some foreign destinations,
self-driving. This is so for Upper Austria, for example, where accommodation is
in farmhouses and apartments, with a good food hamper to tide you over the first
night. But a special feature is the inclusion in the price (eg £87 for each of
four for two weeks in the high season, including cross-Channel ferry) of
vouchers valid for a whole range of sporting activities.

Music is the theme of one of Serenissima's programmes focusing on ten of
Europe's leading festivals from Prague in late May (£535, seven nights) to
Lucerne in late August (£550, seven nights). Prices also cover tickets for
several festival performances. Page & Moy have a programme devoted to stately
homes and castles in several European countries, including Royal Denmark (five
nights, £288 in May and September). French Travel Service suggest a charming
interlude in Paris: a four-day Belle Epoque tour, with half a dozen departures
(£225 from any British Rail mainland station), reviving as far as possible the
grand old days between 1885 and 1914, complete with the patisserie, an operetta,
and champagne at the Moulin Rouge. On another package they can fix you up en
famille with an opportunity to share in Parisian family life.

Finally for the young who would like a rest from their parents there are the
very carefully supervised adventure holidays of PGL in Britain and Europe, now
in their 24th year. Arrangements fall into various age groups (7-9, 8-12, 12-17
and adults from 18-30). If your parents insist on being in the vicinity, PGL
can probably help them with accommodation. A Dutch barge adventure is one of
the attractive suggestions in Europe.

* Further information: Peregrine Holidays, 40/41 South Parade, Summertown,
Oxford OX2 7JP; Sunbird Holidays, 2 Lower Sloane Street, London SW1W 8BJ; Field
Studies Council, Preston Montford, Montford Bridge, Shrewsbury SY4 1HW; Ramblers
Holidays, 13 Longcroft House, Fretherne Road, Welwyn Garden City, Herts. AL8
6PQ; West Himalayan Holidays, 66 Hungerford Road, London N7 9LP; Galleon,
Galleon House, King Street, Maidstone, Kent ME14 1EG; Countrywide Holidays,
Brich Heys, Cromwell Range, Manchester M14 6HU; Take Five, Enbrok House,
Sandgate Hill, Folkestone, Kent CT20 3SG; Serenissima, 2 Lower Sloane Street,
London SW1W 8BJ; Page & Moy, 136/140 London Road, Leicester LE2 1EN; French
Travel Service, Francis House, Francis Street, London SW1P EDE; PGL, Station
Street, Ross-on-Wye, Herefordshire HR9 7AH.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Bird watching in the Galapagos -- the brown Galapagos Pelican

Copyright 1982 The Financial Times Limited

1042 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Hornblower's last fight

BYLINE: Max Commander

SECTION: SECTION I; Leisure; Pg. 7

LENGTH: 913 words

THE GREY LIGHT of the dreaded Sunday dawned. I groaned at the thought of the
annual battle ahead -- a fight I have never won, nor even drawn.

The date and latitude and longitude are fixed; the first Sunday after Christmas
with me heavily outnumbered across the dining-room table.

The roast beef was digesting nicely. I decanted a large glass of port to ease
the pain of the impending and ignominious defeat.

I waited for the ranging shot. Usually my wife leads the attack, but this year
18-year-old daughter was the spearhead. It seemed at first a fairly harmless
whiff across the bows.

"What are we doing about a holiday this year, Dad?" she said.

As it was the first blow, I ignored the question. But I was rocked by the speed
and accuracy of the second, this from 14-year-old daughter.

"We could go to America," she said, "a friend of mine went to Miami, said it was
fabulous."

Ah, I thought, so this is to be this year's strategy, a venomous feminine plot
to lure me and my wallet across the Atlantic.

Before I could come about to present a bows-on target, my wife came in with guns
training onto my bearing. "Claire (she is eldest daughter who has fled the
nest) said Disneyland was marvellous."

"I would love to explore San Fransisco" -- 18 year old.

"Quite cheap in the States" -- 14 year old.

The fall of shot was getting closer. Time for an urgent change of course. I
put down my glass.

"Did you real about those British families mugged and robbed in Miami?" I
followed up sharply. "San Francisco is too far. New York would be only half
way."

The monstrous regiment regrouped, readying for another salvo.

"Air fares across the Atlantic and in the States are very reasonable" -- 18 year
old.

"Bound to rise; you've not been reading the papers properly." I rammed this one
home sensing a slight faltering in the ranks. Time to try to break the line.

"In any event," I said in my tone of decision, "I have to go to the States on a
job later in the year."

This was a real blow, fired on the up-roll. I celebrated the first victory with
a second glass. A mistake; my wife re-loaded in a flash.

"If you didn't drink so much we could afford to go to Hong Kong." (She had also
erred with that one, and knew it.)

"And if you didn't spend so much on clothes we could afford to buy a villa in
the South of France," I said.

Blood was flowing in the scuppers, no quarter asked or given, but sensing the
chance of the first victory in more than 20 years I decided on a full broadside.

"But I am not," I said in my best Capt. Hornblower tone of decision, "beating
all the way to the South of France surrounded by a lot of lunatic French drivers
intent on their usual August carnage.

"Nor am I renting a villa in the Dordogne." A real hull-shot this one.

Some years before we had taken what was euphemistically described as a "villa"
but turned out to be a cottage perched precariously half way up a cliff sans hot
water and sans heating.

We managed to get the car up a muddy track to within half a mile of the "eyrie."
Only a strategically placed boulder presumably left by an earlier disillusioned
tenant prevented the car sliding into the river several hundred feet below.

The view was magnificent, I'm told, but through 14 days of sheeting rain it
tended to be a bit blurred.After abseiling to the village below to stock up with
sufficient food and bottles of red and white to make life bearable, we played
Scrabble daily.

I organised a championship which youngest daughter won by about 10,000 points.
My wife said it was stupid for a grown journalist to sulk because there wasn't
an Oxford Dictionary in the villa.

However, back to the dining room and I scented victory. There was some disarray
in the opposing fleet. I discharged my carronade.

"Package deal to Spain is also out," I said. "Remember Almeria?"

This referred to two and a half hours sitting in a Boeing 737 in a temperature
well into the eighties. The plane couldn't take off because of some
bloody-minded air traffic controllers' dispute and the Spanish not letting us
back into the airport. We finally arrived at Gatwick looking like baked
potatoes.

At the teatime surrender parley I was a magnanimous conqueror. I offered them
Wales.

"Not likely," said the 18-year-old, "grandma lives there; it rains all the
time."

I proffered the West Country.

"Traffic jams," they said.

"A mini-break in the New Forest. It says here," I said, shuffling through the
Sunday papers, "this very good hotel, venison dinner for . . ."

"Friday to Sunday isn't much of a holiday," said the 14-year-old.

"We could combine it with a weekend in Boulogne," said my wife, who has been
much taken by the place since attending a five-day "haute" cuisine course there.

I detected insurrection by the vanquished. A whiff of grapeshot as a warning, I
decided.

"Do you recall that ferry to Dieppe?" I asked. They were all suicidal with
seasickness.

The peace treaty was drawn up over scones, lashings of fresh cream and tea. The
three females are going to Miami. Wife (who works) is paying for herself and
one daughter. I have generously agreed to pay for the other one . . . providing
she finds her own spending money.

Me? I'm staying home to potter in the garden and lay down a few bottles of
vintage.

Paragrah three, clause four, says I have to join them in the States if the
Editor agrees.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1043 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Canetti now;
Auto-Da-Fe by Elias Canetti, translated from the German by C. V. Wedgwood.
Jonathan Cape £7.95, 464 pages. Crowds and Power by Elias Canetti, translated
from the German by Carol Stewart, Penguin (paperback) £2.95, 757 pages

BYLINE: BY ANTHONY CURTIS

SECTION: SECTION I; Books; Pg. 8

LENGTH: 1140 words

The most recent work of the latest Nobel author, Elias Canetti, to be published
in England is neither of the two books listed above which are reissues. It is
an essay of just over a hundred pages, based on a visit to Morocco, The Voices
of Marrakesh (Marion Boyars, £5.50). It appeared in 1978 translated by J. A.
Underwood but it was already eleven years old, having originally been published
in German, the language in which Canetti composes his literary works. In it he
describes a visit to a part of Marrakesh occupied by hundreds of blind people,
most of them beggars, all of them spending the major part of their lives in
saying the single word, "Allah!"

Back from Morocco, [writes Canetti] I once sat down with my eyes closed and my
legs crossed in a corner of my room and tried to say "Allah! Allah! Allah!"
over and over again for half an hour at the right speed and volume. I tried to
imagine myself going on saying it for a whole day and a large part of the night;
taking a short sleep and then beginning again, doing the same thing for days and
weeks, months and years; growing old and older and living like that, and
clinging tenaciously to that life; flying into a fury if something disturbed me
in that life; wanting nothing else, sticking to it utterly.

Having acted out the experience for himself, Canetti then ponders its meaning:

I understood the seduction there is in a life that reduces everything to the
simplest kind of repetition. . . . I understood what these blind beggars really
are: the saints of repetition. Most of what for us still eludes repetition is
eradicated from their lives.

There we have the essence of the man and I would urge the reader who is totally
unfamiliar with the work to begin gently, if that is the word, with The Voices,
rather than to make a premature assault on the novel Auto-Da-Fe. In the shorter
book you meet Canetti at his most relaxed and you are immediately won over by
his guileful simplicity and charm. He proceeds always from the vividly realised
particular instance, to the abstract principles governing it. He reduces a
human personality to the ruling obsession that motivates it.

In Auto-Da-Fe we have a group of such personalities, each motivated by an
obsession delineated in terms of things to the point of caricature, and mutually
exclusive of the other obsessions with which it comes into violent conflict.
The characters are like highly charged objects caught up in each other's fields
of force, drawn to each other irresistibly, only to be violently repelled at the
point of contact.

The one English writer I can think of whose view of the world seems to resemble
Canetti's is, oddly, Ben Jonson, in plays like The Alchemist or Bartholomew
Fair. Canetti shares the black corrosive yet strangely joyful energy of late
Elizabethan and Jacobean comedy. Imagine a world peopled by figures out of the
German painter George Grosz but scripted by a modern Ben Jonson or Middleton,
and you have, perhaps a model for Auto-Da-Fe.

It appeared first in German in 1935 as Die Blendung and is his only novel to be
published. The English version now reprinted was made "under the personal
supervision of the author" by C. V. Wedgwood. Possibly the literal translation
of the title, The Blinding, gives a more immediately helpful pointer to the
intention. The city in which the action occurs is not named but it is clearly
Vienna. Canetti was brought up there from the age of eight. His background is
wonderfully cosmopolitan, born actually in Bulgaria to parents who were
Spanish-speaking Sephardic Jews with German as a second language. They lived in
Manchester for business reasons until his father died in 1913 when Canetti was
8; then Vienna, with school in Zurich and Frankfurt, until 1938; then Paris for
a year; then London where he has a flat; then in 1963 Zurich where he now lives.
In recent years the Nobel Prize judges have shown a strong bias in favour of
writers whose genius has been the product of their uprootedness, Samuel Beckett,
Singer, Milosz and now Canetti. They share an underlying sense of the forces of
history that have conditioned life in our period. They make the domestic
concerns of many English novelists seem frivolous and trivial.

In Auto-Da-Fe the sense of exile is largely an interior one; we watch it
overwhelming the anti-hero, an eminent scholar of Chinese literature and
philosophy whose pride and joy, whose sole reason for living, is his magnificent
library. It is not possible to live wholly in the rarefied scholarly ambience
of a private library, removed from all human contact, much as Peter Kien tries
so to do. Food, sleep, the cleaning of the premises, are necessities to which
even super-human, scholarly singleness of purpose must occasionally make
concessions, and they in turn necessitate the employment of a housekeeper and
minimal human contact.

This is the chink in Kien's armour through which he becomes vulnerable to the
world. Mistaking his housekeeper's feigned respect for his beloved books for
genuine reverence, he marries her.

Her obsession with security then comes into mortal collision with his passion
for textual exegesis. This leads both of them too seek allies in the struggle,
among tradespeople, criminals, vagrants any lay-abouts, each of whom tries to
exploit the situation in the light of his or her particular ruling obsession.
There is a peculiar nasty and vicious dwarf who nourishes dreams of becoming a
world chess champion, and who latches on to Kien like a limpet. Gradually a
group, or what Canetti calls a crowd, forms. The novel traces the formation and
dissolution of this group as well as the careers of each of its members with
remarkable saturation of detail.

Even the arrival on the scene from Paris of a "sane" man, Kien's brother, a
psychiatrist, who assesses the situation accurately and seemingly restores the
library to its pristine tranquillity, cannot in reality begin to put out the
flames aroused by Kien's maina. They spread contagiously like wildfire and it
is in an actual fire started by himself that Kien perishes. Hence the title
Canetti has chosen for the English version. Kien is martyr to the inquisition
of his own self-sufficiency.

The image of fire as a metaphor of the behaviours of a crowd is one that Canetti
examines along with many others taken from nature in Crowds and Power first
published in 1960, and written while Canetti was living in London. It is a
widely ranging study of crowd-formations throughout primitive and civilised
society, history and religion. The two books, one highly imaginative and the
other deeply thoughtful, are mutually illuminating, and it is good that both are
now readily assessible to the English reader.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Elias Canetti in Stockholm recently, arriving at the Nobel
Prize award dinner with Princess Christine of Sweden

Copyright 1982 The Financial Times Limited

1044 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

On her toes;
Early Memories by Bronislava Nijinska, translated and edited by Irina Nijinska
and Jean Rawlinson. Faber and Faber £15.00, 500 pages

BYLINE: BY CLEMENT CRISP

SECTION: SECTION I; Books; Pg. 8

LENGTH: 771 words

When she died in 1972 at the age of 81, Bronislava Nijinska left a first draft
of her early memoirs. From her childhood she seems to have made notes about
events and people; as a dancer at the Maryinsky Theatre in St. Petersburg and
with Diaghilev she kept diaries and notebooks in which she set down more
extended commentaries about her life, about the art she so nobly served, and
about her brother, Vaslay Nijinsky. It is from this mass of material that she
was preparing a first volume of autobiography, which has now been completed,
edited and organised in translation by her daughter Irina and a novelist, Jean
Rawlinson. The result is a detailed and illuminating book about Nijinska's
family, about her own career and that of her brother up until the outbreak of
the first world war, and especially about the fabled world of the St. Petersburg
ballet and the early seasons of the Diaghilev enterprise.

There emerges a vivid picture of life in Petersburg, where the yound Bronislava
and Vaslav grew up once they had entered the Imperial Ballet school and company,
and of the Russia through which the Nijinsky parents travelled as itinerant
dancers in private theatres. Nijinska's own life affords us extraordinary
insights into the balletic world in Russia, but the central figure of these
memoirs is effectively Vaslav Nijinsky, whose apologia this is, more so even
than in his wife Romola's biography (which Stravinsky called "an infernal
lampoon").

Nijinska's Nijinsky is lively and articulate, a far cry from the taciturn and
uncommunicative being we meet in the writings of most commentators on his life.
By its devotion quite as much as by its intimacy, this view engages our
sympathies and, to a large extent, our credence. But despite the special
pleading inevitable from a sister who acknowledges the profound influence of
Nijinsky's creativity upon her, we sense how various pressures -- Nijinsky's
rejection of his errant father; his distress at the mental instability of his
elder brother; his uncertain relationships with women and his acceptance of the
protective patronage and love of Prince Lvov and then of Diaghilev -- were to
produce those stresses which helped bring about his own mental collapse.

In Nijinska's portrait, though, it is hard to reconcile the musically gifted
young man she pressents with Stravinsky's "poor boy who knew nothing of music,"
or the "most ordinary youth . . . who really remained a boy" until the moment he
was overwhelmed by insanity" of Benois' memoirs. The truth, as so often, lies
somewhere between. Even so, Nijinska's is a compelling figure study,
sensitively placed in its exotic settings. And as a bonus there are the other
portrait-souvenirs: Chaliapine, with whom the young Bronislava fell hopelessly
in love; a rouged and painted Cocteau and a vain, tittuping Modeste Chaikovsky;
the improbable idea of Diaghilev trying to stuff a banana down Misia Sert's
decolletage; and best of all, the descriptions of the Maryinsky ballet in its
hide-bound decline, and of the excitements attendant upon the first Ballet Russe
seasons, with superbly detailed accounts of Nijinsky dancing, and of Adolf Bolm
surging over the stage as the Polovtsian chief.

There is, of course, the "Rashomon - effect" inevitable with memoirs about the
Diaghilev era, and I am not prepared to discount the conflicts of evidence with
the testimony of Grigoriev, Fokine, Benois, Stravinsky, and of Walter Nouvel in
Haskell's Diaghilev. Nijinska proposes Baron Gunsbourg, Diaghilev's homme
d'affaires, as a likely villain in the dismissal scandal, through his desire to
replace Nijinsky with Fokine as choreographer; the assoluta Kschessinskaya
features oddly in the brouhaha about Nijinsky's "revealing" costume which led to
his departure from the Maryinsky. I would challenge Nijinska's assertion that
Ravel was invited to compose Daphnis in 1910, when Calvocoressi's entirely
trustworthy memoirs date this commission to 1909.

But despite these reservations, and a rather pedestrian prose style in the
translation -- and some minor errors in names and titles -- Early Memoirs is a
tremendous document, an essential aid to our understanding of one of the great
periods of Western culture.

In the era of the Ballet Russe, Russian avant garde artists were also creating
remarkable works. Many of these have been re-discovered by a Moscow-born Greek,
George Costakis. His magnificent collection which, among other items, contains
20 Kandinskys, is superbly presented in Russian Avant Garde Art (Thames &
Hudson, £28, 572 pages).

LANGUAGE: ENGLISH

GRAPHIC: Picture, Bronislava Nijinska as the Street Dancer, Konstantin Kobelev
as the Organ Grinder and Lyudmilla Schollar as a Gypsy in the first scene of
"Petrushka" in 1911

Copyright 1982 The Financial Times Limited

1045 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Malta mission

BYLINE: BY MICHAEL DONNE

SECTION: SECTION I; Books; Pg. 8

LENGTH: 168 words

Among the most stirring air stories to emerge from the Second World War was the
heroic defence of Malta by the RAF at a time when the UK forces everywhere were
under severe pressure, and especially in North Africa and the Mediterranean.Lord
James Douglas-Hamilton's The Air Battle for Malta -- the Diaries of a Fighter
Pilot (Mainstream Publishing £7.95, 208 pages) is based upon the diaries kept by
Squadron Leader Lord David Douglas-Hamilton, the author's uncle, who was sent
out secretly to Malta on an American aircraft carrier, to command the 603 (City
of Edinburgh) Squadron at a time when the island was sustaining heavier bombing
than did London at the height of the Blitz. The air Battle for Malta was one of
the biggest air battles of the war, and in its own way was just as important
strategically as the Battle of Britain. This intensely personal account
illustrates vividly what life was like for a fighter pilot at that time, and is
as good as any aviation action story I have read.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1046 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Run rabbit re-run;
Rabbit is Rich by John Updike. Andre Deutsch £7.95, 467 pages

BYLINE: BY ADAM MARS-JONES

SECTION: SECTION I; Books; Pg. 8

LENGTH: 932 words

With Rabbit is Rich John Updike returns for the second time to his character
Harry 'Rabbit' Angstrom, and examines his further progress in the world. That
Angstrom is outstanding neither for intelligence nor decisiveness might make the
prospect of a second reworking seem unpromising, but these factors almost work
in the book's favour. Rabbit's accommodations to marriage and career were
always provisional in previous volumes, and no violence is done to so
pathologically unfinished a character by transposing him to the late late-1970s,
and entering him for a third bout with the human condition.

Rabbit is rich, and almost happy. First seen as a demonstrator of the MagiPeel
Kitchen Peeler, he is still a salesman, but now he co-owns a car showroom.
Since the cars he sells are fuel-efficient and Japanese, he is feeling the
recession less than most, and since his marriage has been in crisis from the
start, it is in respectable shape by the standards now prevailing. Janice
Angstrom, adjudged a poor consumer choice in 1959, turns out to have staying
power.

Rabbit Angstrom is in fact more stable at 46 than he has been for a long time,
and the adjustments he must make in the course of the novel are caused as much
by the chronic shrinking of the world as by any personal limitations. The
energy crisis affects everyone.

Appropriately enough, the events of the book recycle old patterns and rearrange
past experiences; Rabbit must see his own adolescent traumas played out in the
person of his son Nelson. This theme, and with it most of the book, centres
naturally on the city of Brewer, Pennsylvania, but two subsidiary plot-threads
pull in slightly different directions. One is Rabbit's anticipated relationship
with a girl he guesses to be his daughter by an old flame (Ruth Leonard of
Rabbit, Run). They meet only once, when she visits his car showroom at the
beginning of the book, but she becomes and remains part of his mental furniture.
The figure of this unknown daughter promises to reconcile Rabbit the adulterer
and Rabbit the family man, his centrifugal and centripetal aspects, and he pays
two furtive visits to the farm where she lives, without making any discoveries.

Rabbit the adulterer is still busy, at least in his thoughts, this time with
Cindy Murkett, the young wife of his golfing partner Webb. She doesn't
encourage him, but he feels that their encounter is somehow predestined; he
expects a proposed Caribbean holiday to provide opportunities.

The plot moves deftly enough towards the resolution of all these matters; but
throughout, the texture of the writing is what demands attention. Updike's
subject-matter is quotidian, and his characters are no broader than their
backgrounds have made them; so all the resources of his rhetoric are lavished on
making the prose thicken and cross-refer, without betraying the existence of a
narrator subtler than Harry Angstrom, salesman and exbasketball star.

To this end Updike saturates his book with the news headlines of 1979, and fills
his creature Rabbit's head with the magazine Consumer Reports; he goes to great
lengths to prove he's transcribing the world and not transforming it. This is a
paradoxical endeavour, like photorealism in painting, since the more it succeeds
the more pointless it becomes, and the result risks being too insistently
contemporary, an instant fossil with every period detail in place.

A scrupulous materialism has always been one pole of Updike's style, though
perhaps in the past it was less obtrusively documented; the dollar-sign on his
typewriter-keyboard is as indispensable as the comma. But there is another
equially characteristic element at work, a covert lyricism which allows Updike
to moralise, editorialise and aestheticise to his heart's content, as long as he
leaves the realistic surface of the book undisturbed, and so avoids frightening
the Book Clubs.

Normally he risks purple phrases rather than whole passages, and hides an
epigram ("in the vacuum of the heart love falls forever") in a hedge of prosaic
detail. So, for instance, a rainstorm features first as a meteorological event
(causing a baseball match to be cancelled), then as an immediate experience
(beating on the windows), and finally as a subject for lyrical variation: "The
beech accepts, leaf upon leaf, shelves and stairs of continuous dripping, the
rain."

The combined reductive and poetic approach is put to particular use in the
sexual scenes, when flesh is most sheerly itself, but also most mysterious.
Only occasionally does the technique falter, once when the adultery-theme is
concluded on the long-awaited Caribbean holiday: partners are indeed swapped
between the couples, but Rabbit is matched not with the delectable Cindy, but
with unglamorous Thelma, intelligent, intense, and dying slowly of lupus. The
result is a night of confession and sexual taboo-breaking which threatens to be
both solemn and ridiculous, and prompts the only reported speeches in a book
that is conspicuously full and expansive at every other point.

In the Angstrom saga John Updike, who was born in Pennsylvania but came to
notice as a New Yorker staff writer, re-creates his native town across three
decades, scrupulously mimicking social attitudes as they change. It may be that
he needs the ballast of this material for his style to be properly buoyant; but
Updike the transforming narrator nevertheless outclasses the puppets he has now
for the third time chosen to surround with the richness of his observation and
his language.

LANGUAGE: ENGLISH

GRAPHIC: Picture, John Updike: story of a car salesman

Copyright 1982 The Financial Times Limited

1047 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

A better class of repro

BYLINE: by Lucia van der Post

SECTION: SECTION I; How to Spend It; Pg. 9

LENGTH: 857 words

THERE IS something about the very word "repro" that makes most of us feel very
uneasy. Mention it to one's friends and the standard response is usually
something between a sniff and a sneer. Similarly, anybody who deals in genuine
antiques is most unlikely to be able to regard a reproduction with anything but
chilly disdain -- regardless of how much difficulty he has in recognising it as
such. I personally have to confess to a great deal of prejudice in this area --
lacking the wherewithall to buy genuine antiques I prefer to surround myself
with a combination of modern furniture and the simple honesty of "junkshop"
finds.

However, there are now some reproductions which are so meticulously-made, so
finely copied from much-admired originals, so evidently produced with loving
care, that one's instinctive objections seem hard to sustain. Take the
furniture of William Tillman. He has a splendid showroom at No 30, St James's
Street, just off Piccadilly where anybody who is interested may see a large
selection of his reproduction pieces mixed with a small but fine collection of
genuine antiques.

William Tillman started off, like most of us, thinking that there was nothing
like a genuine antique and his very first job was in restoration -- repairing
antiques for the trade. It was only when he saw that there were simply not
enough antiques to go round and that the demand for 18th century dining and
breakfast tables completely outstripped the supply that he decided to start
making them himself.

The first table he ever made was a copy of a Sheraton dining table and it sold,
25 years ago, for £68 -- today it would cost just over £1,000. At the time he
already had 25 craftsmen working for him on the restoration side so it was
relatively simple to turn over to making furniture instead. Now he has 65
craftsmen and produces over 50 different lines -- most of them what might be
called line-for-line copies of original Chippendale, Sheraton or Hepplewhite
designs (he considers the period between 1780 and 1820 to have been the finest
and most elegant time for English furniture) -- but a few of them are what he
calls "Chippendale-style" or "Sheraton-style," that is, modern adaptations of
old designs.

All through the recession whilst most of the furniture industry was on one or
two days a week, William Tillman's men have been on overtime. He turns out over
100 pieces a week and when you discover the difference in price between one of
his designs and its original model (if it could be found) it is not so
surprising that his pieces are so soughtafter.

For instance, about a year ago Mr Tillman bought a Sheraton over breakfast table
at Christie's for £12,265 and he had to do quite a bit of restoration work on it
as well. He now makes line-for-line copies of it (see the photograph above
right) which he sells for £2.310 (plus VAT). He even claims his version is
better. "You could take one of my tables and float it down the Thames. All
you'd have to do is wipe it down, and then you could dine off it. Modern glues
are now superior, construction methods are better and my timber is kilned so
that it can withstand the high temperatures of centrally-heated houses."

Who buys his furniture? Most of it goes to British homes, bought by the sort of
people who live in country houses and either can't afford or can't find the
antique they'd really like.

Anybody interested in Mr Tillman's range can see it either in his showroom in St
James's Street or shops like Harrods, Maples, Waring and Gillow have a good
selection.

Another company specialising in very high-class reproduction furniture is Baker
Knapp and Tubbs. An American company which opened lavish showrooms at 26, King
Street, London WC2 (an introduction from a shop like Harrods or Waring and
Gillow or an interior decorator is necessary to visit them) it specialises,
needless to say, in copies of American designs, and like Mr Tillman it too finds
it is riding the recession exceedingly comfortably. "There seems to be an
insatiable demand for high quality reproduction furniture," said the manager.

Many of the designs are copies of American originals at Charleston, South
Carolina and it is because of the company's known high standards that it has
been given permission by the appropriate societies to make the copies.

It also makes copies of furniture from private collections in fine houses both
in America and over here. From England there is a group of furniture copied
from originals at Woburn Abbey -- there are some nine pieces of Regency
satinwood at prices ranging from £2,100 for a small table to £11,000 for a
breakfront cabinet.

The quality of the furniture is unmistakable, from the fine finishing of the
wood to the smallest details like the brass handles, the keyholes and the
carving.

I don't suppose any of these copies would fool Arthur Negus but they'd certainly
fool most of us and given the difference in price between these models and their
almost unobtainable originals, it's not surprising that they're all going as
fast as the proverbial hot cakes.

LANGUAGE: ENGLISH

GRAPHIC: Picture 1, Photographed are two Chippendale-style ladderback
dining-chairs in mahogany from William Tillman. Chairs are much more
complicated to make than tables which accounts for the fact that they seem
surprisingly expensive -- though when you look at the fine quality of the
carving it is perhaps less startling that they cost £495 (plus VAT) each. Most
of William Tillman's collection consists of tables, desks or chairs -- to
produce today a desk or secretaire to the kind of standard that Mr Tillman aims
at would be almost impossible. For instance a George III bookcase which on the
open market would nowadays fetch about £25,000 would require so many man hours
to make it to the required standard that he couldn't do it even if he could sell
it for £25,000; Picture 2, Photographed is William Tillman's line-for-line copy
of a Sheraton oval breakfast table he bought at Christie's last year for
£12,265. A stunning example of just how big the gap in price can be between the
increasingly unobtainable genuine antiques and the finely-made copies -- this
model is on sale for £2,310 (plus VAT). Mr Tillman does not believe in that
currently popular habit of "distressing" new reproduction furniture as he
believes that firstly, it always looks false and secondly, he likes his
customers to know that the furniture they buy from him will only improve as time
goes on.As he puts it, "I'm making furniture not just for today, but for the
next 1,000 years."; Picture 3, Photographed is a selection of furniture from the
showroom of Baker, Knapp and Tubbs at 26 King Street, London WC2 (an
introduction from an interior decorator or a shop that stocks the furniture like
Harrods or Waring and Gillow is necessary before going along). The splendid
mahogany "Rice Bed" is a copy of an original which is still in Middleton Place
House in South Carolina.The bed was made for an 18th century Middleton bride,
and rice, which brought Charleston its wealth, is celebrated in the rice fronds
hand-carved into the bedposts. The original is, of course, unavailable --
copies from Baker, Knapp and Tubbs are £3,700 each. The mahogany tallboy in the
background is £3,600 while the small group at the front of the photograph
consists of a small breakfast table at £450, and two little Regency chairs at
£630 each. Baker, Knapp and Tubbs carries stock of most models but if there is
no stock there may be a wait of three to four months.

Copyright 1982 The Financial Times Limited

1048 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Winter warmers

BYLINE: by Lucia van der Post

SECTION: SECTION I; How to Spend It; Pg. 9

LENGTH: 635 words

SKIERS, mountaineers, farmers and other outdoor types long ago cottoned onto the
value of thermal underwear but it is only fairly recently that it has begun to
be sold in chainstores up and down the country. I remember just two years ago
trying to buy thermal underwear for a skiing holiday in an ordinary department
store and being given a withering glance by a languid assistant who told me that
they certainly didn't stock it in my size as only elderly large ladies were
interested in it. So much for keeping up with customer trends.

Today young girls up and down the country are buying it to keep them warm whilst
waiting at chilly bus stops, to enable them to wear their cotton trousers and
dresses all through the year, to keep away draughts when wearing light evening
dresses. You can now buy underwear that goes by the name of "thermal" in
chain-stores like Marks and Spencer, British Home Stores, Littlewoods, as well
as in department stores like Harrods and Selfridges.

Thermal by itself doesn't mean a great deal -- it simply means "of heat" -- but
the clear implication is that thermal underwear will keep you warmer than the
non-thermal sort. Certainly almost all the clothing sold with this kind of
label will keep you a lot warmer than the flimsy silk or cotton numbers that
most of us prefer to wear in warmer months.

The two main fibres used in thermal underwear are chlorofibre and Courtauld's
newest fibre, Viloft. A big user of chlorofibre is Damart, who pioneered the
whole idea and who were for years the sole purveyor of these goods.

The Damart catalogue (available free from: Damart, Dept 2, NMA, Bingley, West
Yorks) provides a very easy and convenient way of buying. It looks amusingly
(or perhaps reassurringly?) old-fashioned, but it does offer a wide variety of
styles from a fairly solid allcovering version useful for really chilling
activities like mountaineering or skiing to quite skimpy and lacy numbers which
are obviously only thermal where they cover (which isn't very much).

The catalogue has the great virtue of being extremely clear and informative and
for trendies who read the fashion pages it also offers an authentic grand-dad
type vest (the sort with three buttons down the front) at £7.55.

The chief disadvantage of chlorofibre is that it needs careful washing. The set
I bought for skiing came with a label saying it must only be hand-washed, must
not be dried artificially, nor be ironed! If you can face all that, it does
keep you warm.

Viloft, Courtauld's new fibre, can, on the other hand, be machine-washed at 50
deg C and machine-dried.

Most of the chain-stores and shops now selling thermal underwear offer a choice.
For instance at Marks and Spencer, which sells its own brand, there is
chlorofibre, polyester, polyViloft, polyViscose. Prices vary between £2.50 and
£2.99 for both pants and vests for women, whilst for men prices are £3.25 for
sleeveless vests and short "trunks." Longjohns and short sleeved vests at £4.50
each.

At British Home Stores, too, they are selling underwear in both chlorofibre and
polyViloft and offer a variety of designs.

If you're looking for exciting designs you won't find a great deal of choice.
Wolsey seems to me to have some of the best around -- a year or so ago,
apparently, they experimented with more exciting colours but none of the
underwear buyers believed it would sell, so we never got a chance to see it.
For the moment the choice of colour seems mainly limited to white and cream with
a little blue or brown (at Marks and Spencer and British Home Stores).

Much the most exciting sounding range is the collection Wolsey has introduced
for men -- brightly-coloured long johns with matching zip polo necked sweaters,
or "T" shirt-style tops.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Winter warmth for him and her. In the photograph is
Chilprufe's contribution to a more comfortable winter. In 50/50 Viloft polyster
the range for men is in white with contrasting navy stripes -- T-shirt and
trunks are each about £7. For her -- also 50/50 Viloft polyester has been used
-- in white only, the briefs are £3.50, the sleeveless top, about £4.95.

Copyright 1982 The Financial Times Limited

1049 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Treat the house

BYLINE: by Lucia van der Post

SECTION: SECTION I; How to Spend It; Pg. 9

LENGTH: 255 words

I'M NOT a great frequenter of sales myself -- I don't seem to have the stamina,
the elbow-pushing power or the sheer determination that these forays require --
however there are two sales that I propose to take advantge of myself as they
seem to offer especially tempting buys.

Descamps, the French bedlinen shop, at 197 Sloane Street, London SW1 has a
special promotion running for the whole of the month of January. Two of the
current designs, "Ondes" (a minute abstract in pale pinks and blues) and
"Crochet" (a tiny zig-zag in bright pinks and blues) are going to be reduced --
single sheets (in 100 per cent cotton) down £2 to £14, doubles down £4 to £18.
Pillowcases, duvet covers and so on will be similarly reduced. But the big
bargain seems to be in square pillows -- anyone who has a collection of
hand-embroidered Victorian pillowcases and can't find the pillows to fill them
should rush off now to Descamps where square pillows (65 cm by 65 cm) are on
sale at £6.95 each.

Sanderson of Berners Street has a sale (until February 6) which offers really
substantial reductions on certain bedlinens, furnishing fabrics, wallcoverings
and rugs. For instance, from the "Options" collection there are
polyester/cotton easy-care duvet covers and pillowcases (of seconds quality,
though I couldn't find the flaws) on sale at less than half the normal retail
price (i.e. double duvet covers are down from £27.50 when perfect, to £12).
Wallpapers range from £1.99 to £3.99 depending on the design.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1050 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Les Patineurs

BYLINE: BY CLEMENT CRISP

SECTION: SECTION I; Arts; Pg. 10

LENGTH: 365 words

A new triple bill at Covent Garden brings Les Patineurs back to the repertory
after a considerable absence -- with the Etoile du Nord overture restored as
prelude to the Meyerbeer delights of the score -- in tandem with My Brother, My
Sisters and Elite Syncopations.

It is some comment upon the way the Royal Ballet now dances that the MacMillan
pieces are given tremendous performances, while the older, ancestral Ashton work
looked on Thursday less than idiomatic in utterance. The fault seems to lie in
a lack of elan, an absence of a joyous dashing-over-the-ice abandon in the
soloist roles. The spinning, turning girls have spun and turned with greater
virtuosity in the past, and Stephen Beagley has yet to suggest the
devil-may-care bravure that the best Blue Skaters have shown.

The ensemble seemed strong: greater familiarity with the demands -- and they
were first made in 1937 -- will surely polish this still beguiling ballet to
what should be a pitch of glassy, glittering perfection.

My Brother, My Sisters was entirely excellent. Stephen Jefferies was
ring-master to the macabre and incestuous dramas that the family play, and every
nuance in these eerie games was caught in his ferocious interpretation.
Marguerite Porter, her customarily gentle air a mask beneath which malign
energies seethe finds one of her very best roles as the eldest sister, and she
looks like Ophelia drawn by Charles Addams. Wendy Ellis as the bespectacled
girl (who not only pace Ogden Nash, gets her neck tickled, but well and truly
wrung) is a hapless victim; her siblings are danced with tremendous technical
force by Deirdre Eyden, Genesia Rosato and Sandra Conley.

The ballet is compelling not only for the precision with which MacMillan probes
into psychic tensions, but also for the sensitivity of the ensemble playing: the
mounting horror with which the girls watch their brother whipping himself into
an epileptic fit is spine-chilling.

And in Elite Syncopations every caper was cut with greatest elegance. Especial
thanks to Jennifer Penney as the red-starred girl, dancing with angelic ease and
the lightest, prettiest wit.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1051 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Here's a Funny Thing

BYLINE: BY JAMES FRENCH

SECTION: SECTION I; Arts; Pg. 10

LENGTH: 381 words

Miller's the name, lady, there'll never be another. Max said so. And he was
right. But for those who loved the Cheeky Chappie, and those too young to have
known Variety's most outrageous comedian of the midcentury, Here's a Funny Thing
at the Fortune Theatre is the next best thing.

It is a one-man and pianist entertainment devised by journalist Bill Shakespeare
when he was resting from The Times two years back. You might have thought Max
was more a Sun man's subject but Shakespeare has put together a nice balance of
biographic reminiscence and variety act. It is Miller's undiluted blue magic.

Not quite so sure about John Bardon, though. Good lad. Good artist. Good
actor. Puts it over well. Stylish. Saucy. But, if you'll pardon the
comparison, he is a bristling bass bullock; Miller was a frolicsome tenor
piglet. Bardon leers with his blue eyes; Miller's blue saucers beamed like
searchlights.

Bardon sounded like a man with a good voice trying to sing badly. Miller was a
nasal bathroom balladeer who knew he could not sing but did. Me, too. In the
bath and elsewhere. Pity Shakespeare did not include "I ain't half proud of my
old mum." Too clean, I suppose.

Read Miller's patter in print and it seems trite and unamusing. But John Bardon
put it over well. Like I said, stylish. But sometimes just a little too
quickly. Maxie knew we weren't all as quick as he was. He'd allow the slow
ones a bit of time to rumble it. After all, it's all in the mind, innit?

Years ago I had a sweetheart whose family record collection included,
surprisingly, two 12 inch 78s of Miller at the Holborn Empire. That's not why I
loved her though. "We don't play them," she said. "Why not?" asked I. "Daddy
doesn't like them." "Go on," said I, "let's play them." We did for a while.
Funny thing, it seemed to put a damper on romance. Lovely girl. Wonder what
happened to her?

Twenty years ago I went to the closing night of the Express, Brixton. Miller
was top of the last bill. Don you know, the blighter played the first half only
and buzzed off. Outrageous! But he was. There is a "Brighten up Brixton"
campaign in full swing now. They ought to boot out the bingo and put on Here's
a Funny Thing. Yes, even on the rates.

LANGUAGE: ENGLISH

GRAPHIC: Picture, John Bardon as Max Miller

Copyright 1982 The Financial Times Limited

1052 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Collectors' item

BYLINE: BY WILLIAM PACKER

SECTION: SECTION I; Arts; Pg. 10

LENGTH: 252 words

Paintings for Collectors is the seasonal show at the Roy Miles Gallery in London
and though one must be rather in the big league to act upon the suggestion in
that title, it is nevertheless open and welcoming to any interested visitor, and
is certainly a treat. The exhibition has been extended to January 20.

What Miles has done has been to bring together some 40 pictures that represent
the character of his dealing over the past few years; and once all the bustle
and excitement of publicity, for which he also has so much talent and as little
reluctance, has subsided, we are left with the undeniable fact that some
remarkably good pictures have passed through his hands, and artists recalled who
but for his interest would remain obscure, or at the very least
under-acknowledged.

This collection is predominantly of work of the 19th century, and mostly British
at that, but it includes a number of Dutch still-lifes of the 17th and
encroaches upon the 20th with one or two academy pictures, most particularly an
unusual large figure composition in oil by Russell Flint, three girls
deshabillees and a bridge.

Each to his taste indeed, and for my part I would recommend a triple portrait by
Alma-Tadema, the heads only of the Three Graces, with four unfinished decorative
roundels set into the frame about them; and also an eminently characteristic
evening landscape by the estimable Scot, Joseph Farquharson, that shows a flock
of sheep and its shepherd advancing down a snow-filled lane.

LANGUAGE: ENGLISH

GRAPHIC: Picture, The Painted Bridge by Sir William Russell Flint

Copyright 1982 The Financial Times Limited

1053 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Goings and cummings

BYLINE: BY B. A. YOUNG

SECTION: SECTION I; Arts; Pg. 10

LENGTH: 723 words

The new year begins unchanged from the old, except that Radio 1 has inaugurated
something requiring us to think. The series on The Record Producers which began
on Sunday looked interesting and it was perhaps no more than bad luck that the
programme about Tom Dowd wasn't up to much. I liked to hear about the first
steps in tape-editing in the forties, even if Tom's memory had a way of letting
him down rather often. But there are some more immediately attractive names
coming up later.

I stayed with Radio 1 afterwards, when Peter Clayton devoted a programme to
Hoagy Carmichael, whom we mourn. Carmichael was a musicians' composer -- a jazz
musicians', I mean -- and we had a wealth of music from players like Bix, Louis
Armstrong, Gene Krupa, Lionel Hampton and more to show us how they were
invigorated by his songs. If only Mr Clayton wouldn't talk such nonsense
between the discs! -- all those superlatives attached to quite simple things.
But I suppose it's an occupational hazard for comperes of popular music, who
only too often find themselves condemned to enthuse over something transparently
second-rate.

Until I read the small print, I thought we might get some more examination of
the pops from Nashville (Radio 4 on Monday), but the name was only made up to
label a programme based on the verse of Ogden Nash. Ogden Nash was coupled with
Kurt Weill and Vernon Duke, and although the result was pleasantly frivolous, I
didn't feel it did justice to Nash, who was fundamentally a serious man writing
serious things in his very unserious manner, such as his poem about the
Japanese, which I have no room to quote. All the same, Robert Cushman (who used
to do a one-man Nash performance), Joss Ackland, Lauren Willoughby and Nickolas
Grace gave us an entertaining time, directed by Jonathan James-Moore.

A poet of another genre is e.e. cummings, as we all obediently write it, though
how we are supposed to make it sound any different on the radio I don't know.
Eye, or rather eye, which was described as "an autobiography of e.e. cummings by
david ossman," as if ossman and cummings were Gertrude Stein and Alice B.
Toklas, was set as a public meeting where cummings was lecturing and the
admiring young were asking him questions. The poet delivered himself of some
gobbets of philosophy in an autobiographical vein, and there were some readings
of the verse.

The selections from the philosophy sounded surprisingly pompous and elderly,
though don fellows (you can't accuse radio times of inconsistency) delivered
them well enough. The readings from the poems, believe it or not, also sounded
pompous and elderly. How could this have happened?How could whoever-it-was have
read "it's just spring, when the world is mud, luscious," when cummings has
taken the trouble to write it as "the world is mudluscious" (and cf in the next
verse "puddle-wonderful," not to mention "bettyandisbell")?

Ah, but there was improvised music with a gratefully familiar sound from a
vibraphone. How could anyone stop listening to that? It conjured the true
spirit of e.e. cummings, the writer, and inhabiter, of The Enormous Room.

Notes on a couple of Radio 4 plays. The hero of Diary of Nigel Mole is a
thirteen-and-three-quarter-year-old schoolboy, so Sue Townsend, who created him,
might have taken the trouble to find him a new name, since a schoolboy called
Nigel Molesworth romped through the pages of Punch and into stiff and paper
covers not very long ago. Mole was a naive little prig, but Nicholas Barnes
made him sound lifelike and indeed likable in his performance. I can't think
why an experienced director like John Tydeman should have put all that ghastly
singing at the end of the programme.

The Trout Variations, a wild parody of the tough private eye school, set in
Glasgow, oversteps the bounds of possibility at once, for the characters include
the President of the National Union of Witch-Doctors and a scientist capable of
turning one person into another. The detective is called Simon Trout and has a
doppelganger called Siegmund Forelle (geddit?). Peter Kelley and Russell Hunter
are two of my favourite Scots actors, even after this. The author, Lewis Cowen,
plays Forelle, and the director, originally for Radio Scotland, is Tom
Kinninmont.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1054 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Brecht's Edward II at Round House

SECTION: SECTION I; Arts; Pg. 10

LENGTH: 65 words

Brecht's version of Marlowe's Edward II opens at the Round House on February 24
in a production by Roland Rees for Foco Novo, the touring company this year
celebrating its 10th anniversary. The cast includes Daxid Dixon, Beth Morris,
Ian Hogg, and Billy McColl.

The play has been seen only twice before in London; at the Old Vic in 1968 and,
10 years later, at the Bush Theatre.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1055 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Nonesuch books for the weekend

BYLINE: BY JUNE FIELD

SECTION: SECTION I; Collecting; Pg. 11

LENGTH: 1125 words

The train! The twelve o'clock for paradise.

Hurry, or it will try to creep away.

Out in the countryside everyone is wise:

We can only be wise on Saturday.

Poem by Harold Monro in The Week-end Book, 1924 THE FIRST Nonesuch Press
"Week-end Book" was typical of the personal preferences of its instigators,
three-times married Francis Meynell (1891-1975), and his second wife Vera
Mendel, who wanted and allpurpose book to take on their walking tours.

Nonesuch, its name taken from the Tudor Nonesuch Palace, which Henry VIII
started to build in 1538 in Cheam, Surrey, was founded in 1923 by the Meynells
in partnership with David Garnett, who died last February. More shades of
Bloomsbury here, because although the Meynells were never actually pert of the
group, their circle of friends overlapped, with Garnett's friend Duncan Grant
(whose daughter Angelica, by Vanessa Bell, later became Garnett's second wife),
the only member of the group to work for Nonesuch.

Nevertheless, the Meynells had a somewhat similar charisma. In Great Friends,
1979, Garnett described his meeting with the family in Sussex in 1915: "Wilfred
Meynell, the Patriarch, was rustling the pages of the Observer, the room was
full of dark, madonna-like girls and women, the Poetess (Francis" mother,
Alice), lay streteched upon a couch . . . (when) a tall, handsome young man came
eagerly into the room. It was Francis Meynell, who had run three miles across
the marsh with the Holy Fathers (or Brothers) at Amberley. . . . And how like a
Blake engraving was the whole religious family at that moment!"

The picture comes to life in A History of the Nonesuch Press, by John Dreyfus,
with an introduction by Geoffrey Keynes, and a Descriptive Catalogue by David
McKitterick, Simon Rendell and John Dreyfus. It is a handsome, beautifully
produced book limited to 950 numbered copies, which must now be considered the
definitive work. Detailed are the years before Nonesuch, and the prosperity of
the Press until the 1930s depression, the rot already setting in with the Wall
Street crash of 1929, with Meynell writing to his American distributor, Bennett
Cerf: "I'm not going to look at a financial report from Wall Street for two
years. I'm giving up my subscription to the Financial Times."

The business passed into American hands in 1936, but with the help of Max
Reinhardt of The Bodley Head, Sir Francis (he was knighted in 1946 for his
war-time services to the Board of Trade) was able to resume ownership in 1953.

The varied output over the years was also revealed in a charming little
exhibition (now dismantled) put on recently by Frank Collieson at Heffers
Bookshop, Cambridge. Much of the material came from Dame Alix, Sir Francis's
widow. It included the first Nonesuch book, The Love Poems of John Donne,
printed in 17th-century Fell types, with a new comma designed specially for the
book as the original one was too heavy. With dark red Italian paper-covered
boards, it was printed with a wood-cut pattern also used for the endpapers.

A number of superb textures, patterns and colours were worked out for the books,
remarkable considering Meynell was partically colour-blind. He is said to have
once bought a suit in New York, only to discover when unpacking it that it was
bookie's brown and not the banker's blue he had thought.

He had remarkable gifts for typographical display, too, although in a "The
Typography of Advertising" lecture given at the Stationer's Hall in 1960, he
deplored the used of the word typographer, and the fact that he had even been
called in print, Architypographer: "What an arch-horrible word. In my young
days we used to call it lay-out."

Nonesuch was not technically a private press, where in the purest sense, fine
books are printed without the use of elaborate machinery, but as Mr Dreyfus, a
trade publisher specialising in finely printed books, points out. "The reason
for employing a compositor and owning equipment for setting and printing by hand
was mainly so that Francis could experiment at leisure with specimen pages for
Nonesuch books later composed and printed by machine." In his first prospectus
Meynell declared his aims to be "significance of subject, beauty and low price."

Nonesuch books are around for the collector. For instance John Byrne at Bertram
Rota has The Miscellaneous Poems of Andrew Marvell, at £21 (850 at 15s copies
were printed in 1923), the two volumes of Don Quixote de la Mancha reprinted in
an unlimited edition in 1930 with illustrations by E. McKnight Kauffer, £75, and
one of the 110 sets published in 1928 of The Works of Sir John Vanbrugh, £150.
I recently bought William Beckford's Vathek, 1929, with illustrations by textile
designer Marion Dorn; the book is a joy to handle, with its pale grey mottled
Van Gelder paper, marbled end papers, and rich tan-coloured cover, the title
gold-blocked in Arabic.

The Basilisk Press, founded in 1974 by Charlene Garry to specialise and produce
in fine quality previously unpublished material which originated in the 18th and
19th century, has just produced its third catalogue of private press and limited
edition books, primarily hand-made, from many countries. It makes delightfully
appealing reading, with its pertinent observations on the books, their authors
and producers.

A first work by artist/poet Penelope Sitweel of the legendary literary family,
Green Song, from the Opal Press has "a russett-coloured binding:" Adam and the
Sacred Nine by Ted Hughes for his sister Olwyn's Rainbow Press is in "smooth,
light blue calf with smashing blue patterned endpapers," £50; while Harold
Keene's translation of the 13th century An Account of my Hut from the Banyan
Press, Vermont, US, is in a wrapper of Japanese rice paper incorporating
seaweed, £10. Prices vary from this amount up to £1,000 each for 25 copies of
Basilisk's own Epithalamion in Japan vellum bound in full leather to a design
created by Blair Hughes-Stanton 50 years after he first printed the book.
Standard copies ate in an edition of 125, in parchment bound rose paper over
board with leather edging, £200. A special illustrated prospectus lists the
background of this dramatic "Hymn to Marriage."

* John Dreyfus A History of the Nonesuch Press distributed by The Bodley Head,
£115, plus £2.25 postage, in stock at Bertram Rota, 30 and 31 Long Acre, London,
WC2, and Heffers Bookshop, 20 Trinity Street, Cambridge, CB2 3NG: Basilisk Press
and Bookshop Catalogue, £4 including postage from Michael Taylor, The Basilisk
Press, 32 England's Lane, Hampstead, NW3, who will also send "a free eight-page
section on Epithalamion.

LANGUAGE: ENGLISH

GRAPHIC: Illustration, Nonesuch Press "Gloriana's Glass" produced for Queen
Elizabeth Il's coronation, from "A History of The Nonesuch Press" by John
Dreyfus, just published in a limited edition of 950

Copyright 1982 The Financial Times Limited

1056 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Radical German success

BYLINE: STUART MARSHALL

SECTION: SECTION I; Collecting; Motoring; Pg. 11

LENGTH: 668 words

TO MANY an enthusiastic owner, the idea of anyone trying to improve on the
original Giugiaro designed VW Scirocco must have seemed like painting the
proverbial lily. But the radical restyling this sporty two-plus-two has just
undergone must be rated a total success.

The 1982 Scirocco, newly arrived in Britain, is four inches longer, has nearly
two inches more headroom but looks just as sleek as before. It is faster (due
to improved aerodynamics) and, in one version at least, astonishingly fuel
efficient. The official figures for the Scirocco GL 1.6 with the 4+E economy
gearbox tell the story. In the urban cycle, the GL returns 29.4 mpg (4 mpg
better than the previous model). At a constant 56 mph, consumption is a miserly
53.3 mpg (40.9 mpg before) and at 75 mph, 37.2 mpg (31 mpg).

High gearing is the secret. With the 4+E box, fifth is so "tall" you must
forget all about it in town. It is a true overdrive, giving a maximum speed
lower than in fourth. At 100 mph the Scirocco GL's engine is turning over at
only 4,000 rpm and it runs out of steam altogether at about 4,300 rpm on the
level, representing 107 mph. It would, I suppose, pick up another few miles per
hour downhill. At 100 mph, which it will hold on the autobahn continuously, the
Scirocco feels as relaxed as a car of twice its engine size. There is very
little mechanical noise. The admirable aerodynamics also ensure that wind roar
is minimal.

One doesn't normally buy an elegant coupe if squeezing the last mile out of a
gallon of petrol is a high priority. But getting a consumption of close to 40
mpg from the Scirocco doesn't compromise driving pleasure. It is a car one is
instantly at home in. A friend of mine who has long lusted after a Scirocco
tried my test car. After 10 brisk miles on a winding local road he turned to me
and said he felt as though he had been driving his own familiar car, not one he
had never sat in before.

I knew what he meant because this "at home" feeling is typical of all the new
generation VWs. The controls are well placed and smoothly efficient. Handling
is responsive, though never edgily so.

The suspension irons out the bumps -- even most of this season's crop of new
potholes -- but lets you know what kind of surface the tyres are rolling on.
And the fairly firm seats fit the body properly.

When accelerating through the gears, the economy light shines if excessive revs
are wasting fuel. In the overdrive fifth, a needle appears, giving an instant
approximation of the fuel consumption. A hard and impatient driver might find
it irritating. On the other hand, there is satisfaction to be had from making
sure the warning light does not come on and that the needle keeps to the frugal
side of the gauge. It certainly pays off at the filling station, where a light
footed driver finds the 8.9 gallon tank gives a safe refuelling range of more
than 300 miles.

There is ample leg, shoulder and hip room up front. Rear passengers are less
cramped than they were in the former Scirocco but it is not a car in which four
adults would willingly embark on a long journey. The front pillars are rather
thick; although the single wiper clears most of the screen the top corners form
a blind spot when motorway mud has dried there. For reversing, an extension of
the back window under the aerodynamic spoiler is a great help.

The GL 4+E I drove costs £6,497, which includes integral front fog lamps,
headlamp wash system, light alloy wheels and metallic paint. An automatic
version is £6,732. For £5,424 the 1,457 cc, 70 horsepower CL looks the part but
is slower (101 mph maximum) and with a four-speed gearbox cannot match the GL's
extreme economy. VW's fastest car is currently the 117 mph Scirocco GTi, fuel
injected, with 110 bhp under the bonnet and a close ratio five-speed box. Do
not expect almost 40 mpg out of this one, though VW say 30 mpg should be
possible even for the driver who exploits the eager performance.

LANGUAGE: ENGLISH

GRAPHIC: Picture, The 1982 Scirocco GL; ultra long-legged for relaxed and
economical motorway driving

Copyright 1982 The Financial Times Limited

1057 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Sinbad modern style from Oman

BYLINE: JAMES MACKAY

SECTION: SECTION I; Collecting; Stamps; Pg. 11

LENGTH: 947 words

THE VOYAGES of Sindbad the sailor may seem far removed from the scientific
expeditions of modern times, but scholars have unravelled many of the far
fetched tales recounted by the legendary wanderer in The Arabian Nights and have
come to the conclusion that may of them had a sound basis in fact. They also
lie behind a new issue of stamps by the Sultanate of Oman.

According to legend, Sindbad was a wealthy merchant of Basra who recounts his
youthful adventures. Some of his encounters, with the giant Roc who can fly
with an elephant in his talons, may be dismissed as pure fiction. Others, like
his tale of the Old Man of the Sea (probably one of the huge apes of Borneo or
Sumatra), the cannibal country of the Cyclops (thought to be the Andaman
Islands), and the country rich in sandalwood (possibly Timor) and his meeting
with the rich King of Ceylon, have a ring of truth.

Time Severin, who previously demonstrated that the fabled voyage of St Brendan
to America by leather boat could have taken place, has just retraced Sindbad's
route from Arabia to China in a boom dhow of mediaeval contruction. The ship,
called the Sohar after Sindbad's birth place, was commissioned from the dhow
builders of Sur in Oman. It was built from hand carved planks of India Aini
wood, sewn into position with about 450 metres of coconut fibre rope and another
four tonnes of rope, hand made from about 75,000 husks, were used for cables and
hawsers. The Sohar, propelled by two huge sails, was built by 32 shipwrights
who achieved tolerances of less than a milimetre with the simplest of tools, and
not a single nail anywhere in the ship's construction.

With a scientific team and an eight - man Omani crew, Severin embarked on the
voyage which was sponsored by the Omani Government to celebrate the 10th
anniversary of the Sultanate. The Sohar took the old "silk and spice" route,
down the Malabar coast into the Indian Ocean past Kerala in India and Sri Lanka
and across the Bay of Bengal to Sumatra and northwards to Hong Kong and China.
In Sindbad's first voyage he landed on an island which turned out to be the back
of a while. Sad to say, the Sohar expedition found no evidence of whales in the
northern Indian Ocean although it is now declared an international whale
sanctuary.

Nevertheless the voyage proved of immense scientific value, testing also the
validity of the Sindbad story and the seafaring capabilities of the Omani Arabs.
The Sultanate of Oman commemorated the voyage recently by issuing a set of four
stamps and a miniature sheet, depicting views of Muscat Harbour, old and new,
the Sohar and a map of the route.

A scientific expedition also forms the subject of Britain's first set of 1982 to
be issued on February 10. It celebrates the 150th anniversary of the voyage of
HMS Beagle which had been commissioned in 1983 to complete the survey of
Patagonia and Tierra del Fuego begun by Captain King in 1826-30, to survey the
coasts of Chile and Peru and to carry a chain of chronometrical measurements
around the world. The Beagle, a ten gun brig, commanded by Captain FitzRoy,
left Devenport on December 27 1831. For most of the ensuing four years the
Beagle sailed back and forward around the coasts of South America, culminating
in the historic visit to the Galapagos Islands in September / October 1835. It
was there that the ship's naturalist, Charles Darwin, observed the way in which
various species of birds and animals had adapted themselves to the peculiarities
of their environment which gave him the ideas he subsequently developed in the
Origin of Species.

On October 20, 1835, the ship left the Galapagos and travelled westward across
the Pacific by way of Tahiti, New Zealand, Australia, the Cocos Keeling Islands,
Mauritius, the Cape of Good Hope, St Helena, Ascension, Brazil, the Cape Verde
Islands, and the Azores, reaching Falmouth on October 2, 1836. Darwin later
published his journal of the voyage, which became one of the great "best
sellers" of the 19th century, and followed it up with his Theory of Evolution,
published in 1858, and his books The Origin of Species and The Descent of Man.
He died in April 1882, so it is fitting that the British Post Office should
issue stamps in the centenary year. The date of issue, however, coincides with
his birth at Shrewsbury in 1809, and a pictorial postmark is being used at
Shrewsbury in addition to the usual first-day cancellation at the Philatelic
Bureau in Edinburgh.

The stamps have been designed by David Gentleman and portray Darwin in old age,
with his signature at the top and flanked by fauna associated with his travels
and career. The motifs are giant tortoises (15 1/2p), iguanas (19 1/2p),
finches (26p), and prehistoric skulls (29p).

It is likely that the 150th anniversary of the voyage of the Beagle will result
in the issue of stamps from the countries visited by Darwin. Already a set of
three stamps and a mniature sheet have been issued by the Cocos Keeling Islands
on December 28. Darwin, the Beagle and specimens of fauna and flora associated
with his visit, are featured on the stamps.

Fortunately for those thinking of making a collection of stamps devoted to
Darwin, the previous issues are few in number and still relatively inexpensive.
Ecuador issued a set of six in 1936 to mark the centenary of his visit to the
Galapagos Islands. The German Democratic Republic issued a 10 pfenning stamp in
1958 to celebrate the centenary of the publication of The Theory of Evolution,
and the following year both Romania and Russia issued stamps in honour of the
150th anniversary of his birth.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1058 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

BYLINE: JOHN CHERRINGTON

SECTION: SECTION I; Collecting; Country Life; Pg. 11

LENGTH: 400 words

IT USED to be any young man's dream to find himself cut off by the tide in some
particularly safe cove or on a ledge with the girl of his dreams. There above
the tide mark and away from trying eyes he could wear down her resistance, or at
least perform a hero act trying to scale the cliff for help, so earning her
undying gratitude. All it needed was a tide table and a knowledge of highwater
marks.

It is no longer so. The cliffs and beaches of Pembrokeshire are patrolled day,
and night if reports are true, by a host of dog walkers equipped with binoculars
on the look-out for an excuse to call out the rescue helicopters. Intending
isolation seekers should make sure that they are wearing camouflage clothing and
this does entail a degree of co-operation by the girl.

Anything coloured is enough to send the watchers to dial 999, even if there have
been no signals for assistance, once it looks as though someone had been cut
off.

Once the wheels have been set in motion, and there is no means of knowing if
indeed they have, unless those cut off have a CB radio, there is an
inevitability about the process which is almost frightening. I watched the
whole remorseless drama on a Pembrokeshire beach a few days ago.

The trapped had been spotted through a red anorak on a ledge 600 yards away.
Through binoculars they did not seem to be very excited and the cliff behind did
not look unclimbable nor would it have been too difficult to wade around to the
beach.

The first to arrive were coastguards and park wardens who placed themselves on
the cliffs above those cut off. Then two policemen who joined them. Should the
helicopter not arrive they would go down on a rope said the Knowledgeable ones.
They could also be cutting off their escape.

About 20 minutes after the alarm the helicopter arrived and stationed itself
just off shore and the rescuer was lowered to water level and drifted in to the
target. A most impressive display of skill this, and well worth watching.
Those to be rescued were sent up by a sling two by two to be followed by the
rescuer himself.

It seems to me though that in this situation the young man is almost certain to
lose. If the rescue is unwanted the public embarrassment could well end a
promising idyll. But even worse might happen if by a miscalculation the danger
is real. The girl might fall for the rescuer.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1059 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

What women buy and drink now

BYLINE: EDMUND PENNING ROWSELL

SECTION: SECTION I; Collecting; Wine; Pg. 11

LENGTH: 1242 words

FOR SOME TIME, market research has been telling us that more women than men buy
wine. What we have not been told is whether more women than men actually choose
the wine they buy, or whether they buy more wine than men. What is clear,
however, is that women are drinking a great deal more wine than they did not
many years ago. Many can no longer be fobbed off with that small glass of sweet
white wine from an indeterminate source, while the men concentrate on the hard
or at least stronger stuff.

Nevertheless tradition, upbringing and male attitudes still play a very large
part in influencing women's tastes or at least their choice when they are buying
alcoholic drinks. This is demonstrated in Selling Alcoholic Drinks to Women, a
research project conducted by Research Associates (£340 from The Radfords,
Stone, Staffordshire), who have already published reports on young people's
drinking habits in Britain and the U.S. The latest is based on six group
discussions in the North, Midlands and South of England, in which 62 women of
varying ages and socio-economic groups took part. All had purchased alcoholic
drink in a preceding week last spring. Before the discussions they had filled
up a questionnaire about how often they had an alcoholic drink, where and how
much they normally spent. Also what types they bought, and how much they were
influenced by brands and their advertisements. The meetings were followed up by
country-wide telephone calls to 512 women, 94 per cent of whom occasionally at
least consumed alcoholic drinks; and these were asked a condensed version of the
questions in the questionnaire.

The report confirms a common view that supermarkets are where women mostly
purchase alcoholic drinks, and they buy them in the course of the household
shopping. "It doesn't look so bad if you buy it with other things" is one
reported comment. For this reason women do not like separate tills for wines
and spirits. Consequently off-licences are at a disadvantage, for it means a
separate stop and entry, one, perhaps, that still causes embarrassment to many
women. A woman "who drinks" is still likely to be viewed less tolerantly
socially than a man who does, and to be seen in an off-licence may suggest this.
Off-licences score outside normal shopping hours, but otherwise their display is
considered inferior, their prices not competitive. An advantage that
off-licences have is in giving advice and service.

In the survey pubs come off badly as places where women buy wine, and clubs,
grocery shops and restaurants even worse. From the almost negligible proportion
of those who claim to buy wine in restaurants, it would appear that there the
women "leave it" to the males, many of whom are apt to believe themselves to
have been specially educated, if not born, to "know about" such things.

No mention is made of women buying from traditional wine merchants, who
represent the higher part of the market, but, if it is any guide, at least 80
per cent of people who join the Wine Society are male.

Women, it is reported here, prefer wine to beer or spirits, which are regarded
as men's drinks. They like it because it is "inexpensive, palatable and light."
Wine bars are increasingly popular with women, were they feel more at ease than
in pubs.

The national sample, however, appeared to drink more apirits and beer and much
less table wine than those in the discussion groups, but fortified wines were
narrowly ahead of spirits. Twenty-five per cent said they drank wine more
frequently than other alcoholic drinks.

Parents' attitudes towards their younger daughters drinking differs from that to
their sons, although the younger respondents stated that their parents were more
tolerant than the older women had claimed for theirs. Most young girls had
started drinking for social reasons, and initially had not necessarily enjoyed
it very much. Two drinks on one occasion had been "a big deal." When they grow
older women do not usually drink more, but more at home, in formal entertaining
or informally, for relaxation and at the end of a day's work.

Wine is the drink that women buy most for their own consumption, and it is fair
to conclude that this is their own choice. Sherry comes next, followed some way
behind by Martini and Cinzano; while spirits are right at the bottom of the
list. But for others in the family beer is the first buying choice, wine the
second and whisky third. On this buying list, lager is well behind and sherry
much lower still.

Women like drinking at home as "they do not have to worry about price or driving
home, as they do when they go out." There is some resentment that husbands
consider their driving licence more important than their wives', who
consequently are obliged to abstain.

In restaurants women would overwhelmingly choose wine, with sherry as the
favoured aperitif. Wine is also the most popular buy for parties, with beer
next, spirits much less and sherry seldom purchased for these occasions.

Is the sherry party dead, or reserved for the middle-aged middle class? Most of
those questioned associated sherry with older people, but in general fortified
wines are considered as women's drinks, especially sherry and vermouth. "You
wouldn't expect to see a man drink it," was one comment. Perhaps this sex view
of sherry drinking helps to explain the current problems of the sherry trade,
although today sherry is generally excellent value for money.

When, however, it came to brand and advertisement knowledge of fortified wines,
the brand owners have no great reason to congratulate themselves, with the
exception of Harvey, Wartini and, rather less so, Cinzano. These were the
brands women were shown most to be aware of, but recall of advertisements put
the two vermouths top and Harvey next. The best liked were Martini Extra Dry on
the rocks for their simplicity and good taste, and Harvey sherries for their
impact -- "you can hear the tinkling of the ice."

Brand awareness of wine was very low, presumably because few can afford vast
sums in advertising and still remain competitive in price. Not surprisingly,
therefore, those getting some mention were Blue Nun and Mateus Rose. Such brand
awareness as exists derives much more from "friends' stock, restaurant wine
lists and holidays."

On spirits Bell's Scotch headed a substantial list of brands remembered,
followed by Gordon's Gin and, somewhat behind, Teacher's Johnny Walker and
Smirnoff.

The recollection of advertisements was very low indeed, with Bailey's Irish
Cream heading a small list with few positive responses. Henessy's was the best
liked spirits one, for being "simple" and having a "feeling of warmth," which
might be a hint to some other cognac advertisers. Although most of the
respondents drink spirits occasionally, in most families only the husband does.

While many women apparently feel that there are "women's drinks," some, for
Women's Lib, reasons, are strongly opposed to this. Although among the younger
generation there is a more liberal attitude towards alcohol, overall the view in
the survey is that progress had been slow in this respect, and regular female
drinking is not accepted as it is with men. And the "white wine for ladies"
convention dies hard, not least owing to the often mistaken view that white wine
is less strong than red. There's the slimming factor too.

LANGUAGE: ENGLISH

GRAPHIC: Illustration, no caption

Copyright 1982 The Financial Times Limited

1060 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

A seasonal hangover

SECTION: SECTION I; Editorial Comment; Pg. 12

LENGTH: 874 words

MARKETS ON both sides of the Atlantic have greeted 1982 with a groan and a
bleary eye. Like a man with a hangover, they flinch at the faintest sound, and
regard with jaundiced scorn anyone who believes it might turn out bright after
all. To be sure, the threat of a rail strike in the UK, with possibly a miners'
strike to follow, and a bearish forecast from Dr Henry Kaufman on U.S. interest
rates are not imaginary troubles, and it is rational to take account of them.
On the other hand, it is rational also to give some weight to the OECD and
consensus forecast of a slow but accelerating economic recovery, and the hope of
a sharp revival in profits.

It seems, in short, that the market's understanding of the prospect before us is
heavily seasoned with disillusion, and this is not surprising. The events of
1981 destroyed a lot of hopes -- of peaceful liberalisation in Poland, of
Reaganomics, of the beneficial effects of monetarism in the UK. If there is a
silver lining to the Polish tragedy, as some experts still argue, it has yet to
make itself visible. Reaganomics has now been abandoned by the U.S. Treasury
Secretary, Mr Donald Regan, who concedes that something must be done to check
the growth of government borrowing.

Reminder

In the UK the bitter lesson has been that not even success in cutting government
borrowing is necessarily enough to bring interest rates down. It is no good our
getting the balance right if the Americans continue to get it wrong -- no good,
that is, as long as we continue to worry about the sterling-dollar exchange
rate.

The effective collapse of Smith St. Aubyn, one of the smaller discount houses,
is a reminder of the disappointed hopes of the gilts market; the disaster was
entirely the result of a very stale bull portfolio of short gilts.

The episode must also call in question the role of the discount houses as the
chosen vehicle for Bank of England messages to the markets in general. Their
financial role is considerably reduced in the new monetary system, which is much
more permissive about the banking reserve assets which the discount houses
supply. Selling commercial bills to the Bank of England, the new development in
managing the monetary statistics, provides large turnover but at the finest of
margins. The houses may well feel driven to seek higher and therefore riskier
returns on some of their assets.

This in turn is only a detail in the much wider questions concerning British
monetary policy. The attempt to control the broad money supply has never looked
convincing since the imposition of the banking corset conceales the true trends,
and its subsequent removal revealed an alarming bulge. The latest development
is that the banks are tending to inflate the money supply by bidding house
market lending away from the building societies, and the Bank of England is
countering by intervening in the bill market to take commercial lending business
from the banks.

This strange process may or may not produce acceptable money numbers, but the
whole game seems to have drifted out of any contact with real economic problems.
The retirement next month of the two senior Bank of England executives most
concerned with market management in the last decade may well coincide with the
closing of the historic chapter over which they presided.

Evidence

There remains some sporting interest in seeing whether the whole machine of
broad monetary control can be maintained in some sort of roadworthy condition
while it is driven to the scrapyard, or will collapse into a heap of distorted
statistics on the way there, but that is about all. Virtually nobody takes the
M3 target very seriously any more, and the City would sleep easier and wake
fresher if it knew what was to take its place. We seem at the moment to be
under some sort of de facto exchange rate target, but even the principle has yet
to be agreed, let alont the details.

Meanwhile, out in the real world, thee is evidence that things are not quite as
bad as the present market mood might suggest. Car sales, like exports, are
performing rather better than forecast. The Ford workers have settled for
peace, if at a price.

There is no reason yet, then, to dismiss all the Government's hopes for 1982, of
a real revival based on a leaner but more efficient private sector. The
prospect of a tax increase in the U.S. may be unpalatable to American taxpayers,
but it could forestall the kind of crisis of confidence which raised U.S.
interest rates to such a damaging peak last autumn.

Consenus

This fact, coupled with a revived interest in UK securities from British
institutions, who have made a large portfolio adjustment to build up their
foreign holdings, should make for a less disappointing market this year. The
consensus view of the City, according to Messel's latest institutional poll, is
for a distinct if modest advance in the gilts market this year.

This hope may not be warming us much at the moment, but it does call for a big
improvement over the performance of the last two years. If the market regains
the confidence to back its own forecasts, 1982 should not prove quite so bad as
it seems to look now.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1061 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

The rising cost of a bargain

BYLINE: By Richard Lambert, Financial Editor

SECTION: SECTION I; Stock Exchange Commissions; Pg. 12

LENGTH: 1430 words

STOCKBROKERS RANK somewhere also with mothers-in-law in popular opinion polls.
Although the business has changed radically in the last decade, the caricature
figure remains: overpaid, underworked, and perhaps just a little bit "fly."

Given this unflattering image, the Stock Exchange Council faces a tough task
with its proposals -- published yesterday -- to increase the minimum rates which
brokers must charge for their services. It has to balance the interests of its
members -- who elect the Council -- against those of investors and the public
generally.

The Stock Exchange offers what is in many respects a monopoly service -- and a
profitable one, at that. If it was seen to be making too much money, its powers
to fix prices would inevitably be challenged. But if members feel they are not
making enough, they could get themselves a new Council -- or take up
vegetable-growing.

This is an especially sensitive time to be talking about higher commission. Two
things have happened since the last rate increase, in 1976. The abolition of
fixed commission rates on Wall Street, which took effect a year earlier, did not
turn out to be the disaster for the brokers that at first seemed possible. On
the contrary, the broking business is in a much more healthy -- albeit slimmer
-- shape than it was six years ago.

Secondly, the Office of Fair Trading has mounted an attack on the London Stock
Exchange's rule book. The case could come before the Restrictive Practices
Court somewhere around 1984 -- and is bound to involve a particularly close
study of the commission structure.

It may seem odd that this bastion of capitalism should not allow price
competition among its members. The Stock Exchange defends the minimum
commission structure on two main counts. The first is that the so-called
"single capacity" system -- whereby brokers may only act as agents earning
commission income and jobbers as principals making profits by dealing on their
own account -- would come under intolerable pressure if commission rates became
subject to negotiation.

The brokers would want to get their hands on a slice of the jobbers' profits --
and the jobbers would respond in kind.

In most of the world's stock exchanges, brokers act as both principals and
agents. But the London authorities say that the separation of capacity
providedes a better assurance of a continuous, efficient and fair market.

The second argument is that if minimum commissions were abolished, it would
become impossible to run a compensation fund to protect the clients of firms
that go bust. Members would not be prepared to contribute towards a fund to
protect the clients of firms that priced their services irresponsibly.

But while holding unswervingly to its faith in minimum commissions, the Stock
Exchange had realised that it can no longer raise its prices without so much as
a nod to its customers. This explains why it is inviting the widest possible
comment on yesterday's proposals, and why it has gone to unprecedented lengths
in an attempt to justify the increases.

This takes a little doing. The daily value of turnover in gilts has exploded in
recent years, and although equity business has been less buoyant, it has still
been broadly maintained in real terms over the last four or five years. Since
commission is levied as a percentage of turnover, why the need for any increase
at all?

The answer is that the charges are made on a tapering scale. At the present
rates, a small equity bargain will be charged at 1 1/2 per cent whereas the rate
on a very big deal will be just 0.125 per cent. As the size of bargains has
increased over the years, the "top slice" of business has moved into a band
carrying a lower rate of commission.

The review indicated that between 1975-76 and 1979-80, the net commission income
of a typical large firm in London rose by something like two-fifths to just over
£4m. This is noticeably less than the rate of inflation.

It also shows that gilt-edged is more profitable than equity business -- and
that the big increase in gilt-edged turnover has been concentrated among
relatively few broking firms.

But maybe brokers were just making too much money in the first place.
Anticipating this criticism, the most revealing part of the review is given over
to an attempt to refute the idea that brokers are overpaid.

Part of the exercise consists of figures showing the average earnings for each
partner in different categories of firm. The sums are not precise. They show
the total revenues of firms in the sample, less their total expenditure, and a
further notional sum representing interest on partners' capital. That net
earnings figure is then divided by the total number of partners, including those
who are paid a salary.

On this basis, the average remuneration for each partner in 1979-80 was £26,470.

The figures are not available for 1980-81, which would have been a much better
year.

That does not sound like penury. There are over 2,000 partners in the Stock
Exchange, out of a total workforce of under 15,000. For comparison, ICI -- with
a workforce in the UK six times the size of the entire broking sector -- had
just 1,100 employees earning more than £20,000 last year.

But of course wages in the City have usually looked very attractive compared
with those available in industry. The review quotes an analysis by Hay/MSL of
salaries in the financial sector, excluding broking firms. Half-way through
1981, the median salary for a top management post (below board level) in a
medium or large financial concern was £21,000.

This was a base figure, and did not take account of such perks as cheap mortgage
facilities and motor cars, which were apparently worth no less than 45 per cent
extra on the salary.

The review suggests that perks are less generally available to partners in
broking firms. More importantly, it also points out that the partner in a
broking firm has to take unlimited liability for all the obligations of the
firm. The rewards may be large but -- as the partners in Hedderwick Stirling
found out -- so are the risks.

Relative to inflation, the average earnings of Stock Exchange partners have held
up reasonably well in the past few years. But this has not been enough to
maintain the capital base of the sector in real terms. Partners have bolstered
their take-home pay by leaving less money in the business. Wealthy partners
have retired, and been replaced by younger members with les capital to offer.

Inflation has hitten into the capital suructure of pretty well all financial
companies, and the brokers are no exception. It is a volatile business, and
firms need adequate backing to see them through bad times with a reasonable
safety margin. The Stock Exchange's main argument for higher commission rates
is that the erosion in the brokers' capital base must at least be checked.

However, when it comes to specific recommendations for rate increases, the
review is less well documented. The decision to put the main burden on smaller
investors is not supported by any detailed cost analysis but simply on the
"universal agreement" among members that commissions are too low to cover the
costs of processing small bargains. That may well be true, but it is also the
case that small investors are less well placed to argue their case than the big
institutions.

Not all of the large groups will be happy, either, for the analysis of revenue
and profits is not nearly as detailed as some had hoped. For instance, Mr
George Dennis, of the Post Office pension fund, had called for a breakdown
showing whether investors were subsidising non-stockbroking activities.

The review has also dismissed those who favour the "unbundling" of commissions,
aimed at getting rid of what Mr David Malcolm of Royal Insurance calls "all the
rubbish research work." He would like to have a reduced commission for dealing
and settlement and to pay separately for the research which he thinks is worth
while.

Against this, the Stock Exchange argues that the commission covers a package of
services, including advice -- and that cannot in practice be separated from
research.

Most big investors probably favour the retention of a minimum scale of
commission, but have some doubts about the way the overall package is
structured. The next few weeks will show whether the Stock Exchange has gone
far enough to convince them -- and the wider investing public -- that the
proposed changes are necessary and desirable.

LANGUAGE: ENGLISH

GRAPHIC: Graphs 1 and 2, no caption, Bob Hutchison; Picture, no caption, Bob
Hutchison

Copyright 1982 The Financial Times Limited

1062 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday
Correction Appended

How Wall Street lived with competition

SECTION: SECTION I; Pg. 12

LENGTH: 366 words

THEY STILL remember "Mayday" on Wall Street -- May 1 1975, when fixed rate
commissions were abolished. The wave of competition that was then unleashed has
not only held down commissions and brought all sorts of new services in the
fight for clients. It also spawned a new sector -- the discount brokers, which
offer no frills services at bargain prices, and probably now control about a
tenth of the market.

A lot of firms could not stand the pace. Some went under, and others collapsed
into the arms of stronger merger partners. Wall Street today is a chastened but
stronger band of brothers. Merrill Lynch, the giant of the business, is
capitalised at well over $1bn, with several other firms in the $500m to $1bn
range. The recent rash of acquisitions by outsiders of Wall Street firms has
underlined the appeal of the broking business in the financial services boom.

The Securities and Exchange Commission says that Mayday has greatly reduced
commissions for institutional investors, and cut them somewhat for large private
investors. Fees for smaller bargains have gone up, but not by as much as
inflation.

In most other markets in the world, fixed commissions are still the rule, with
some modest variations. For instance the bank commission in Germany is
negotiable on large deals.

If the proposed changes are approved, commission rates in London will be
relatively high for the smaller investor. A £5,000 deal in equities will cost
£87.50, compared with about £57 in Japan. But the bigger deals look more
competitive. A £50,000 bargain will cost £340.50 and one of £100,000 will carry
a commission of £590.50. That compares well with most places apart from Hong
Kong and, after allowing for the discount, probably the U.S. as well.
COMMISSION RATES OVERSEAS
Bargain £5,000 £10,000 £100,000
Australia £112.50 £675 £1,175
Japan  £57.25 £422.50 £769
Hong Kong  £25 £250 £500
South Africa  £42.50 £425 £850
Germany  £50 £500 £1,000
U.S. +  £87.50 £450 £800

+ In the U.S. the average full commission is subject to reduction by
negotiation.

Source: Rowe and Pitman.

LANGUAGE: ENGLISH

CORRECTION-DATE: January 16, 1982, Saturday

CORRECTION: In the table headed "Commission rates overseas" in last Saturday's
article, the column headed £10,000 bargain actually referred to deals of
£50,000.

Copyright 1982 The Financial Times Limited

1063 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Shortage

BYLINE: J. Scarborough (Dr), International Electronics, Ewood Bridge,
Haslingden, Lancs.

SECTION: SECTION I; Letters to the Editor; Pg. 12

LENGTH: 350 words

From Dr J. Scarborough

Sir, -- For the past 12 months we have been seeking both qualified electronics
development staff and sales engineers, not only by advertising nationally in the
Press, but also by direct approaches to suitable well-known companies currently
involved in massive redundancy exercises. The remeneration packages offered
have been competitive when measured against published data.

The results have been utterly depressing in terms both of the number and quality
of applications received. On the sales side applicants rarely seem able to sell
themselves in either their application forms or interviews -- what hope then for
them selling our products? On the technical side we have found aspiring PhDs in
electronics quite unable to solve simple electronics design problems -- and we
cannot afford engineers who are capable of dealing only with the more esoteric
elements of design.

If the nation's economic salvation is indeed dependent upon companies such as
ours then our experience bodes ill for its future prosperity. The country's
education system has for some time been producing either a sub-standard product,
and/or a product with skills for which the employment market can find no ready
use. Those with the required skills either lack the boldness to accept the
challenge and excitement that a small high technology company offers or, because
of their scarcity, command a price far in excess of the supposed going market
rates. Our frustration must be shared by many companies similar to our own.

I would ask politicians and educationists alike to replace well meaning words
with practical action to alleviate these shortages. To those who have the
necessary skills, please be prepared to accept the challenge a small company
offers -- any imagined risk is amply offset by increased job satisfaction and
the potential promotional and financial rewards.

If we can restore the relevance of our educational system and rekindle a spirit
of adventure in its products then we at least have two important ingredients in
the recipe for success.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1064 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Small

BYLINE: Andrea Hertz (Parliamentary Assistant Liberal Whip's Office), House of
Commons, SW1.

SECTION: SECTION I; Letters to the Editor; Pg. 12

LENGTH: 71 words

From Andrea Hertz

Sir, -- It is not surprising that Mr Tim Dickson (January 5) believes that Lord
Lever's proposals for the revival of the small business sector accord more
closely with Alliance principles than with Labour policy.It was, after all, the
Parliamentary Liberal Party which, during the Lib-Lab pact, forced the Labour
Government to appoint Harold Lever to oversee all matters affecting small firms.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1065 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Futures

BYLINE: (Dr) G. T. Gemmill, City University Business School, Barbican Centre,
EC2.

SECTION: SECTION I; Letters to the Editor; Pg. 12

LENGTH: 489 words

From Dr G. Gemmill

Sir, -- David Lascelles (Lombard, December 17) argues that "the whole
interest-rate-futures business is getting out of hand." While I would agree that
the enthusiasm of the Americans for these markets is quite remarkable and the
public benefits of all this activity are probably minor, his article contains
three fallacies.

The first is that futures markets somehow "anaesthetise risk" which is in
conflict with the teaching of Reaganomics which extolls the virtue of taking
risks. Futures markets do not reduce risks (except to the extent that they
stabilise prices); they merely exchange and spread risks. His argument could be
used equally against an insurance market such as Lloyd's, thus demonstrating its
absurdity.

The second is that the existence of such exotic contracts as those proposed for
a stock-index or the consumer price index (CPI) can in some way be harmful. For
example, he asks: "Why should governments toil to combat inflation if the
population is happily hedged against the next rise in the CPI?" Why indeed? If
some of the people want to hedge against inflation, at a cost, and others agree
to accept the risk, in the expectation of a profit, can that be bad? Since
markets generally forecast at least as well as models (for the obvious reason
that profits are made from market forecasts whereas model-builders' jobs may not
be quite so dependent), it is likely that CPI futures would give predictions at
least as useful as those of the London Business School, National Institute of
Economic and Social Research, and Treasury. It is disingenuous of Mr Lascelles
to suggest that there would be no short hedgers in CPI futures: the futures
price would usually stand at a premium and the shorts would profit if the rate
turned out to be less than that premium. If I offer Mr Lascelles a forecast
(premium) of 20 per cent inflation for the coming year, will he not be willing
to go short against me?

This leads me to the third fallacy, which is that settlement of futures
contracts in cash is gambling. Does he not realise that more than 90 per cent
of futures contracts are closed-out early and settled in cash already? It makes
no difference if 100 per cent of contracts are settled in cash, as long as the
settlement price accurately reflects conditions in the spot market. The fact
that you settle in cash does not mean that you are not hedging; 100 per cent
cash settlement does not now occur because the law says that delivery of the
commodity must be possible, otherwise the activity is deemed to be gambling.
This law is pure hypocrisy. It prevents the exchange of risks between willing
parties, because it cannot find a better definition of gambiling.

A change in the law would allow futures trading to begin in a variety of
indices, including the retail price index and possibly a housing index, and
would in my view be in the public interest.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1066 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Uncertainty

BYLINE: Alf Gohdes, 6, Cross Street, Farnborough, Hants.

SECTION: SECTION I; Letters to the Editor; Pg. 12

LENGTH: 168 words

From Mr A. Gohdes

Sir, -- Mr Brittan describes Goodhart's Law (Lombard, December 29) as "any
indicator becomes distorted once it is used (the article wrongly said doctored)
as a policy target" and his own version of this Law in reverse, viz: that once
the indicator ceases to be an official targer, it resumes its former role as a
guide to economic behaviour.

It may be as well to remember that a certain Werner Heisenberg proposed the
Uncertainty Principle in 1927, albeit in the realm of nuclear physics: "It is
impossible simultaneously to determine exactly both the position of an object
and its momentum." Roughly translated into economic terminology this becomes:
"It is impossible to observe an indicator without disturbing that which it
intends to measure." It follows from this that the closer an indicator is
observed, the more disturbed are the objects of measurement.

Due credit though to Dr Goodhart who says himself that he is reluctant to take
the credit for his Law.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1067 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Milk

BYLINE: John Heald, Healds Dairies, Didsbury, Manchester.

SECTION: SECTION I; Letters to the Editor; Pg. 12

LENGTH: 215 words

From the Chairman, Healds Dairies

Sir, -- Milk distributors are not lobbying intensively for a price rise
(December 23), costs are rising but not soaring. The Binder Hamlyn
investigation has nothing to do with the split of the retail price between
producers and processors. It is necessary that a costings system exists and that
it should be examined periodically since the retail price is fixed by the
Ministry of Agriculture and we have to buy our milk, also at fixed prices, from
the friendly Milk Marketing Board monopoly which is now a direct competitor in
both liquid and manufacturing markets.

Richard Mooney is correct in saying that liquid sales have declined. The reason
for this is widely known but rarely reported. Milk production has increased
dramatically in the last 10 years and most of the increase has been manufactured
into butter and cheese, giving the Board a return far lower than the liquid
market and so diluting the wholesale producer price. Because the distributive
industry is efficient, low-cost and well managed with super loyal people at all
levels, it is much easier for the Minister, the Board and the NFU to try to
obtain what they say they cannot from manufacture through an excessive retail
price hence lower liquid milk sales.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1068 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Literature

BYLINE: Mike Shields, 199 The Long Shoot, Nuneaton, Warwicks.

SECTION: SECTION I; Letters to the Editor; Pg. 12

LENGTH: 285 words

From the Editor, Orbis

Sir, -- I think that the letter of the secretary-general of the Arts Council
(December 30) requires certain amendments.

Literary magazines haye died over the years, either because grant aid has been
refused in the first instance, because what has been given has been too small to
make any useful difference, or because a grant has been withdrawn. Apart from
the half-dozen or so magazines supported by the Arts Council, most magazines do
lose money. Ask any editor!

The conditions under which grants are awarded are unusual, to say the least. In
a letter to me earlier last year, an Arts Council representative stated: ". . .
the Arts Council has to limit the grant-aid it gives to magazines to those that
have a national coverage and a commensurate number of subscriptions . . .,"
prompting me to ask how rich a magazine must become before it qualifies.

The amount of Arts Council money devoted to literature is derisory. According
to its last set of accounts, no more than 1.2 per cent of expenditure went to
literature as a whole, and only a quarter of that on supporting magazines!

Grants are withdrawn from magazines, usually because it is felt that a magazine
has had its chance and should be self-supporting, but the same criteria do not
seem to be applied to other forms of artistic endeavour.

It should not be surprising therefore that magazines fail. They lack the means
to promote themselves effectively, their subscription lists dwindle, they do not
attract advertising revenue, and it only takes the withdrawal of a grant to
complete the process. Unless something is done to relieve this literary poverty
trap, more magazines will die.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1069 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

VAT

BYLINE: (Sir) Douglas Lovelock, HM Customs and Excise, King's Beam House, Mark
Lane, EC3

SECTION: SECTION I; Letters to the Editor; Pg. 12

LENGTH: 128 words

From the Chairman, HM Customs and Excise

Sir, -- On January 2 you published a letter from Mr H. Mainz relating to VAT
repayments in which he stated that he was informed that repayment claims would
only be processed after a delay of 30 days.

This is not the case. Clearly a misunderstanding has arisen between Mr Mainz and
us, and we are writing to him to sort it out. But I should like to assure you
that Customs and Excise are well aware of the importance of making prompt
repayments of VAT when due and it is our aim in normal working conditions to
make such repayments within 10 working days of receipt of valid claims. Delays
do occur on occasion when queries arise but our 10-day timetable is indeed
achieved in over 90 per cent of cases.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1070 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Makers adjust their sets for a boom

BYLINE: Guy de Jonquieres

SECTION: SECTION I; Pg. 13

LENGTH: 1309 words

HIGHLIGHT: Guy de Jonquieres reports on the surprising boom in TV set sales in
Britain

FOR BRITAIN'S retailing industry, the sluggish pre-Christmas season proved an
appropriately dismal end to a year that most concerned would rather forget. But
in striking contrast to the gloom overhanging sales of many other consumer
products, the UK television market was quietly completing one of its best years
ever.

The British Radio Equipment Manufacturers' Association (BREMA) estimates that
colour set shipments last year totalled more than 2.1m units. It forecasts a
further rise to above 2.2m units this year. Black and white set shipments have
remained buoyant too: about 1.5m were shipped last year.

These figures may not quite match the even more phenomenal success of personal
computers -- Sinclair Research, manufacturer of the £70 ZX-81, says that it is
selling almost 50,000 of the machines a month. But they have been exceeded only
twice, in the "Barber boom" years of 1973 and 1974, when colour set shipments
reached 2.8m and 2.3m respectively.

The British market is exceptional. Television sales have been weak in most
other West European countries. In West Germany, conditions have been poor for
more than 18 months, and suppliers are engaged in a fierce price war in an
attempt to reverse a steady build-up in stocks.

The resilience of UK demand is a godsend to some major manufacturers. "If I
hadn't got the consumer business, I woudn't be too happy," says Mr Ivor Cohen,
managing director of Mullard, the diversified electronics manufacturer which is
the only company still producing television tubes in Britain.

The picture has been brightened further by a sudden surge of demand for sets
equipped to receive teletext services like the BBCs Ceefax and ITV's Oracle.
These use spare capacity on normal broadcasting channels to transmit "pages" of
computerised information such as the news, weather forecasts and sports results.

More than 300,000 teletext sets are now in use in Britain, more than in any
other European country, and the number is expected to be close to 1m by the end
of this year. But though teletext has been operating since the mid-1970s, most
of the sets currently in use have been installed during the past 12 months.

The upturn is particularly welcome news for Britain's £1bn television rental
industry, which supplies more than half the televisions in the country. Already
encouraged by the success of their video recorder business, the rental companies
are counting on teletext sets to give a further boost to a market which had
started to show signs of flattening out.

During the early 1970s, when colour televisions were still a novelty, most
viewers preferred to rent their sets. But falling retail prices and improved
reliability have made outright purchase a more attractive option for many recent
customers. Moreover the rental companies -- like European television
manufacturers -- were slow at first to respond to the shift in consumer taste
towards small colour sets.

Now the balance seems to be swinging back. More than two-thirds of teletext
sets are rented. Thorn Rentals, which operates Radio Rentals, DER,
Multibroadcast, Rumbelows and Southern, says that most of the new sets going
into its showrooms are teletext-equipped.

"The classic pattern is repeating itself," according to Mr Brian Quilter, deputy
chairman of Granada Rentals. "The rental industry is uniquely placed to bring
in new technology. Colour sets came in through rental, and the same is proving
true of teletext."

Teletext sets also provide useful extra margins for manufacturers and retailers
alike. They sell for about £80 and rent for about £2 a month more than
equivalent remote-control televisions, and the cost of the special microchips
fitted to them is likely to fall as production rises.

But teletext sets still account for less than a quarter of new colour
televisions being shipped. The industry attributes much of the underlying
strength of the broader market to a cyclical surge caused by replacement of sets
acquired during the "Barber boom," when consumer spending was running at an
exceptionally high level.

Mr Derek Clark, television products manager of Thorn Consumer Electronics,
estimates that of the 1.5m large-screen colour sets expected to be supplied this
year, as many as 1.25m may be "Barber boom" replacements. Mr Cohen of Mullard
expects replacements to continue to underpin the market for the next two to
three years.

Many in the industry also believe that, perversely, the recession may be
helping. Though their analysis is based more on intuition than hard statistics,
they suspect that consumers are stretching their pay packets by cutting down on
visits to cinemas and theatres and spending more time and money on home
entertainment.

The reasons for the success of teletext are less hard to fathom, however. They
owe much to an unusually effective joint effort to stimulate the market, which
has involved collaboration between the Government, broadcasting organisations,
set manufacturers and retailers.

A number of different steps have been taken. They include a cut in the minimum
deposit required for rented teletext sets, joint promotion of teletext by the
BBC and ITV, official permission for ITV to sell advertising on Oracle and
changes in the Home Office rules to allow faster teletext transmission.

The campaign reached its climax last October, designated as National Teletext
month. The Industry Department spent about £300,000 promoting teletext through
retail outlets, while manufacturers ensured that there was an ample supply of
suitable sets on tap. More than 80,000 sets were shipped in September and
October -- almost double the number in the flrst half of the year.

Meanwhile, the range of information available on teletext is being steadily
expanded to include financial market reports, shopping guides and sub-titles for
the deaf. It seems likely to get a further boost this year, when the BBC starts
to use Ceefax to transmit information to viewers taking part in its planned
microcomputer training course.

Britain's decision to push ahead with teletext is also opening up export
opportunities. Mullard, the major source of teletext microchips, says that it
is selling about one third of its production abroad. Both U.S. broadcasting
companies and Japanese television manufacturers, which have not developed
teletext systems of their own, are showing interest in Britain's technology.

The success of teletext to date contrasts with the largely unsuccessful efforts
to promote British Telecom's Prestel viewdata as a consumer service. In spite
of a massive marketing effort last year Prestel has still attracted only about
13,000 subscribers, almost all of them businesses.

Though Prestel is more sophisticated than teletext because it allows two-way
communication with a central computer, it is also more expensive. Set prices
are higher and there are charges each time the service is used. The teletext
experience suggests that while consumers are becoming used to receiving printed
information on their television screens, they are not yet prepared to pay for
it.

If there is one cloud on the horizon, it is the Government's decision to start
phasing out this year the capital allowances from which television rental
companies currently benefit. The companies are seeking a two-year extension of
the allowances for teletext sets.

As things stand, the rental companies' cash flow is likely to suffer. How that
will affect the television market is still uncertain, though the companies claim
that they can supply an additional 100,000 teletext sets in the next five years
if their request is granted. But given industry forecasts of more than 2m
teletext set shipments in the same period, it remains to be seen whether the
Government will be convinced.

LANGUAGE: ENGLISH

GRAPHIC: Graph, The picture has been brightened by demand for sets equipped for
teletext, Martyn Barnes, Source: ITT consumer electronics information service

Copyright 1982 The Financial Times Limited

1071 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

They're still wild about Harry's

BYLINE: Contributors: Alan Forrest, James French, Colina MacDougall

SECTION: SECTION I; Weekend Brief; Pg. 13

LENGTH: 635 words

Across the herring pond fish and chips are booming. Chains with names like Long
John Silver and Captain D are spreading the traditional British fare across most
of the U.S. Icelandic cod is sought like gold once was in California --
"Americans like it because they like fish that doesn't taste like fish," a U.S.
fish and chip watcher said.

But recently the marketing problems of the Philadelphiabased Arthur Treacher
chain of "chippies" have made front page news in the U.S. business Press and
10,000 small traders in Britain could probably tell the Americans how they are
getting fish and chips wrong.

An old Yorkshire fish-frier sniffed derisively when told the American news.
"They call it fast food over there, don't they? It's not. It's bloody slow
food if you prepare it properly And the Yanks talk about "sophisticated
marketing'! There's nowt sophisticated about fish and chips."

Derek Gulland, general secretary of the Leeds-based National Federation of Fish
Friers, which embraces 4,000 of Britain's 10,000 fish and chip businesses,
wouldn't go so far as that. But he says: "We still find over here that the fish
and chip business doesn't lend itself to chains and franchises -- it is still
basicall a family buisness. A husband and wife can make money, but only if they
have the kind of dedication you expect from a good pub landlord and his wife."

Fish and chips are booming in Britain, too. In recent years the traditional
corner "chippy" did lose trade to the new Chinese and Indian takeaways, but
there are signs of a return to fish and chips, particularly in areas badly hit
by the recession. The business normally booms during a recession, particularly
in the days when fish was a cheap food.

Gulland reports that turnover among his 4,000 members has increased -- "a real
increase, too, because prices haven't risen very much." The federation's
strongest areas are in the north, where fish and chips are still really cheap
and haddock is preferred to cod. "You'll pay perhaps £1.20 for a takeaway in
London, in Leeds the price is still around 40p."

Connoisseurs will argue that the product is better in the north.Some people say
it's the beef dripping used in the cooking as against the south's oil. My
Yorkshire fish frier said: "There are beef dripping people and hard vegetable
fat people.The hard fat is most common today, but I'm a beef dripping man. And
we take the skin off the fish, unlike those lazy b     s in the sough."

The north, of course, has the industry's flagship, Harry Ramsden's, claimed to
be the world's largest fish and chip shop, on the main road between Bradford and
Leeds. Ramsden, now dead, was a back street fish shop man who set up his
handsome catering complex in the early 1930s, the first man to take fish and
chips up market.

He did well enough to celebrate his 50th year in the business, shortly after the
war, by selling fish and chips for 1 1/2d a portion for one night -- the going
price when he first opened a fish and chip shop.

Ramsden's still boasts of the queues of tourists for its restaurant and the
secret ingredient in the batter. (My grandmother, a fine amateur frier used a
pinch of bicarbonate of soda and always claimed Harry Ramsden pinched her idea).

One of Ramsden's ladies said: "No, we're still not licensed. It wouldn't fit in
with our family image. We serve our fish and chips with tea and bread and
butter. And we mush our own mushy peas."

British fish and chips have come quite a long way from the back streets.A lot of
businesses have stayed there, or branched out into shopping suburbs. "But we
couldn't compete with the McDonald's and the pizza palaces for prime High Street
sites -- the rentals are too high," one shop owner said, adding, "But we're not
doing too badly."

LANGUAGE: ENGLISH

GRAPHIC: Picture, no caption

Copyright 1982 The Financial Times Limited

1072 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

The M15 disinformation industry

BYLINE: Contributors: Alan Forrest James French, Colina MacDougall

SECTION: SECTION I; Weekend Brief; Pg. 13

LENGTH: 333 words

Question: Who enjoys a punch on the nose?

Answer: A publisher, particularly before publication.

Eyre Methuen is publishing The Druid by Leonard Mosley (£7.50) on January 18 --
and already the book has caused a barrage of criticism.

Who worries about embargoes when publicity -- including the emergence from the
shadows of wartime Secret Service men to shout that honour has been besmirched
and lies have been told and when BBC television exposure has been given?

Mosley's book -- classified as non-fiction, a decision which puzzled the FT's
would-be reviewer among others -- is about the man he claims was Nazi Germany's
only undetected wartime spy in Britain, who, he suggests, Philby ultimately
recruited into Soviet service.

Ex-Secret Service wallahs are angry about the suggestion that some of them also
did a bit on the side for the Ruskies and the distinguished jurist Ewen Montagu
(misspelt in the book) claims it has 35 major errors and completely
misrepresents Philby's intelligence role.

So is Eyre Methuen doing anything about the counterintelligence chappies' call
to halt publication -- or, at least, classify it as fiction? "Heavens, no" says
publicity director Christopher Falcus. "We are standing four-square behind
Leonard. Publishers back their authors. M15 is not an information industry --
it is a disinformation industry. Authors are an information industry."

Mind you, Mr Falcus would not reveal what the print order for The Druid was.
However, he did admit that since the controversy had broken, orders from
booksellers had hotted up.

Eyre Methuen chairman Michael Turner admitted that the rumpus had blown up
quickly.

Of course, the company has asked Mosley for his comments. Maybe he did not have
his old Daily Express colleague Chapman Pincher to mark his card about
counter-intelligence matters -- but he says he is in correspondence with the
traitor Philby.

As they say in Yorkshire, where there's muck, there's brass.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1073 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Religious revival in China

BYLINE: Contributors: Alan Forrest, James French, Colina MacDougall

SECTION: SECTION I; Weekend Brief; Pg. 13

LENGTH: 681 words

Dr Robert Runcie, the Archbishop of Canterbury, arrived in China yesterday, the
first top Anglican to visit the country since the Communist takeover in 1949.

During his two-day visit he hopes to talk to Bishop Ding Guan Xun, Chairman of
the Chinese Christian Council, in Nanjing in Central China.

Dr Runcie will find encouraging signs of a religious revival in China since
Chairman Mao died in 1979. In Kunming in South-West China recently workmen were
repainting a protestant church on one of the main streets -- one more of the
hundreds of newly opened shrines of all denominations.

At the Buddhist Dragon Gate Temple overbooking Kunming Lake a whole complex of
monastry buildings was being refurbished. The newly gilded carving and
brilliant tiled roofs shone in the evening sunlight amid a chattering flock of
local sightseers.

Even the Communist Party journal, Red Flay recently acknowledged that the number
of religious beliefs in China is now "quite large." There are though to be about
4m Christians of all denominations, 1m or so members of the Protestant churches
and the rest Catholics.

The Protestant churches are quietly thriving under the present relatively
liberal leadership of China's strong man Deng Xiaoping. In the 1950s, China's
protestants shook off the colonial image so much resented in China, adopting the
"three self policy" which aimed at "making the church self-governing
self-supporting and self-propogating.

Peking is willing to allow a foreign religion to exist and even maintain links
with fellow Christians elsewhere provided it is not subject to foreign control.
Bishop Ding has himself recently been to the U.S. and Canada and may come to
Britain this year as part of a delegation.

At the last count, 160 Protestant churches have been reopened and services in
the city are well attended. Peking has returned all church property
sequestrated during the upheaval of the cultural revolution plus rents and
interest not paid during that period.

While most clerics are elderly, the future of the church has begun to look more
promising with 19 students training for the ministry at Nanjing Theological
College. Bishop Ding recently lectured at Nanjing University on Christianity
and Marxism and drew an audience of a thousand people.

The outlook for catholics is more problematic. Peking's Catholic cathedral is
packed on Sundays with devoted Chinese of all ages and dozens of other Catholic
churches are open. But these are run by the Chinese Catholic Church which split
off from Rome in the 1950s. Many Catholics faithful to the Vatican were
imprisoned and the bitterness of the rift still affects Chinese church life.

The Vatican's tentative olive branches proferred in 1980 through the visit of
two European cardinals have so far come to nothing. Indeed the situation grew
worse last year when Bishop Deng Yiming of Canton (a Rome loyalist who had only
recently been freed from prison) was created Archbishop by the Pope. Peking
denounced the appointment as foreign interference.

But in recent years Peking's policy has been to heal the rifts in society caused
by the injustices of the "cultural revolution" by encouraging minority groups to
join the nationwide effort towards modernisation.

There is a tough core of devotees in all religions. They kept their heads down
during the "cultural revolution" but emerged in surprising numbers at the end in
1976.

Religious belief is permitted under China's present constitution and where there
are important minorities, (especially Moslems) it is no par to mid-level
promotion or even to Communist party membership, though this is clearly a matter
of some debate.

Buddhism and Islam have the useful side effect of smoothing relations with the
Asian and Middle Eastern countries which practice the faith, though Peking must
always keep a wary eye open for radical pan-Islamic movements. By the same
token, while liberal attitudes in Peking continue, the rehabilitation of
Christianity has helped to broaden China's links with the West.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1074 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Satellite TV placing raises £4m

SECTION: SECTION I; Companies and Markets; UK Company News; Pg. 14

LENGTH: 434 words

Satellite Television, Britain's first satellite broadcasting company, has raised
£4m by a placing of convertible unsecured loan stock. With the funds in hand,
the group says it now hopes to begin beaming television programmes across Europe
via satellite by early spring.

Eight industrial companies, including Ferranti and Ladbroke, subscribed for the
stock along with 18 financial institutions. SATV, formed in 1980, initially
aims to transmit an Englishlanguage commercial television service in Western
Europe.

Mr David Berriman, chairman, says the group's placing was oversubscribed by
nearly £1m. The convertible stock carries with it the possibility of a further
call of up to £6m in largely convertible loan stock.

Last September, the European Telecommunications Satellite Organisation
(Eutelsat) agreed to British Telecom's request on behalf of SATV to transmit via
Orbital Test Satellite (OTS) for up to six hours per night during the week and
ten hours each on Saturday and Sunday.

Satellite TV expects the principal source of its revenue to come from
advertising, citing a large, unsatisfied demand for television advertising in
Western Europe -- Belgium and Denmark do not allow advertising on national
television while many other countries limit advertising.

At the moment, only certain towns in Finland, Norway and the Netherlands have
cable systems equipped with reception dishes which could receive transmissions
from OTS. So far, only the Finnish telecommunications authority has approved
the reception of SATV's transmissions but approval from the Dutch and Norwegians
is expected shortly. The UK group hopes more countries will give their approval
once the service begins operating.

According to the prospectus issued by SATV, the OTS will have run through its
fuel reserves by 1983 and no longer be of use. As a result, SATV is actively
seeking a successor satellite no OTS.Eutelsat is planning a series of European
Communications Satellites (ECS), the first of which will be launched in
mid-1982. SATV has sought British Telecom's assistance in securing the right to
transmit via ECS but British Telecom has been unable to make any commitments on
availability so far.

The new investors in SATV have holdings varying from 1 per cent to 10 per cent.
Among those holding more than 5 per cent are Industrial and Commercial Finance
Corporation, three major insurance companies, F and C Management and Ferranti
and Ladbroke.

Satellite TV's financial advisers are Barclays Merchant Bank and Guinness Mahon.
Brokers to the issue are James Capel.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1075 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

DIVIDENDS ANNOUNCED

SECTION: SECTION I; Companies and Markets; UK Company News; Pg. 14

LENGTH: 77 words

Date Corre- Total Total
Current of sponding for last
payment payment div. year year
Heavitree Brewery 15.9 Mar. 6 - 22.5 20.4
Ley's Foundries 0.5 April 1 0.95 0.5 2
Robert H. Lowe 2.6 April 1 2.06 3.27 2.72

* Equivalent after allowing for scrip issue.

+ On capital increased by rights and/or acquisition issues.

Dividends shown pence per share net except where otherwise stated.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1076 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

LRC buying Napcolour for £4.5m

SECTION: SECTION I; Companies and Markets; UK Company News; Bids and Deals; Pg.
14

LENGTH: 400 words

LRC International, the rubber mouldings and pharmaceutical products group, is
paying some £4.5m for Napcolour, one of Britain's largest photo processing
businesses.

The business is being acquired from the Charterhouse Group, the investment and
banking conglomerate, and the deal represents the completion of talks announced
last November.

LRC already has a photographic company in United Photographic Laboratories.
This operates in the South of England while the Napcolour business is
predominantly in the North and West.

Napcolour operates a daily collection and delivery service to over 3,500
chemists and photographic dealers for whom it provides a complete developing and
printing service.

Charterhouse invested in Napcolour when it was a relatively small business and
the company felt that that it now seemed sensible that it should leave the
Charterhouse fold and become a more dominant force in the market.

Under the sale agreement LRC will pay an amount equal to the net tangible assets
of Napcolour group at November 27 1981 (some £1.9m), plus £1.16m cash. In
addition it is intended that a dividend of £1m -- after tax credit of £428,000
-- be paid by Napcolour to Charterhouse. The purchase consideration will be
provided from the existing resources of LRC.

Profits of Napcolour before management charges, tax and extraordinary items,
fell from £1.06m to £513,000 in the year 1980. Sales amounted to £12.35m. The
company expects profits for 1981 to show some improvement on 1980.

LRC says that the acquisition will strengthen substantially the successful
involvement of LRC in the field of photographic processing for the retail and
professional sectors.

LRC says that United Photographic has an excellent record of growth in recent
years and is expecting a peak year in 1981/1982. The merger will provide LRC
with national coverage while the addition of Napcolour's Freeprint operations
will enhance the presently limited involvement of United Photographic on the
Continent.

The growth in the photographic processing market in recent years has been
considerable. LRC believes that complementing each other the two businesses
have potential for further sustained growth.

Over the last two years Charterhouse has sold most of its larger wholly owned
industrial subsidiaries. It plans to invest the sale proceeds in smaller
companies.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1077 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

London Shop rejects improved bid

SECTION: SECTION I; Companies and Markets; UK Company News; Bids and Deals; Pg.
14

LENGTH: 451 words

London Shop Property Trust, which is in the process of merging with its sister
company Beaumont Properties under a £21m agreed offer has rejected an improved
offer from Rosehaugh Company, the property company headed by Mr Godfrey Bradman.

The revised terms, which are stated to be conditional on a recommendation from
the London Shop board and on shareholders not approving the proposed merger with
Beaumont, are worth 150p per share and value the entire London Shop capital at
£19.03m.

Rosehaugh already owns 21.4 per cent of the London Shop shares which it acquired
under an option agreement from McLeod Russel and its associate, Broadland
Properties, earlier this month.

London Shop said yesterday that the revised offer "still falls well short of the
underlying net asset value." The directors said that they would strongly
recommend rejection of the offer were it to proceed. The company puts the net
asset value at around 209p.

Under the proposed new offer holders of every six London Shop ordinary would be
offered one new Rosehaugh share, 460p in cash and 190p in a new convertible
unsecured loan stock to be created on terms so that such stock would have a
market value of not less than par.

Rosehaugh said that at a meeting with London Shop on Thursday the directors
indicated that they would "give urgent consideration to any revised proposals in
the light of pending proposals for the merger between London Shop and Beaumont"
which is to be put to a meeting of shareholders for their approval next
Wednesday.

It also said that it reserved the right to proceed at any time with an
unrecommended offer.

London Shop said it would decide whether its shareholders wanted the meeting to
approve the Beaumont merger to go ahead. It said it had strong support from its
major shareholders to go ahead with the merger.

Rosehaugh added that it remains of the view that the proposed merger terms are
inappropriate and unecessarily costly from the point of view of London Shop and
that the proposed merger offers no real benefits for London Shop holders.

Rosehaugh plans to vote its 21.4 per cent holding against the merger resolution
and urges all London Shop shareholders to vote likewise.

It said it planned to make an offer to the holders of the 6.5 per cent
convertible loan stock of London Shop, valuing each £100 of such stock at £180,
and make an appropriate offer of proposal ot the holders of the 9 per cent
convertible loan stock following discussions with the trustees.

On the London Stock Exchange yesterday London Shop shares gained 4p to 140p
while Rosehaugh fell 5p to 250p. London Shop 6 1/2 per cent convertible stock
gained £16 to £178.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1078 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Mr Nadir raises £4.5m with Polly Peck placing

SECTION: SECTION I; Companies and Markets; UK Company News; Bids and Deals; Pg.
14

LENGTH: 304 words

MR ASIL NADIR, chairman of Polly Peck Holdings, has placed a substantial amount
of his shareholding in the company raising £4.55m.

Restro Investments, a Jerseybased company, in which Mr Nadir describes his
involvement as a "substantial beneficial interest," placed 1.3m shares in Polly
Peck at 350p each yesterday with 16 institutions. This reduces Restro's holding
in Polly Peck to 2.9m shares -- 40.3 per cent worth £10.6m -- and increases the
institutional base to around 40 per cent.

Restro paid 9p a share for its original stake.

The placing was arranged by stockbrokers L. Messel.The market price of Polly
Peck slipped back 10p to 365p at the close.

Mr Nadir said yesterday that the placing was made because of the substantial
level of demand from institutions which could not be satisfied by buying in the
market, where the number of shares available was very limited.

Restro has given an undertaking that it will not make any further disposals for
two years.

Restro bought into Polly Peck in March 1980 with a 9p a share offer valuing the
whole company at £470,000. The Zelker family, who had until then controlled the
loss-making ladies fashion company, agreed to sell out their 57 per cent holding
at that price. In all, Restro's offer closed with acceptances of 58 per cent.

Later that year Polly Peck launched a rights issue at 75p a share to finance a
corrugated packaging plant in Cyprus. Restro took up its entitlement.

In the 17 1/2-month period to August 31 1981 Polly Peck made profits of £2.11m.

Wearwell, another company chaired by Mr Nadir, recently launched a rights issue
to raise £5.2m. Mr Nadir has indicated that he will take up his entitlement in
full at a cost of around £675,000. He is also believed to be setting up a trust
for his children.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1079 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Habitat answers critics

SECTION: SECTION I; Companies and Markets; UK Company News; Bids and Deals; Pg.
14

LENGTH: 259 words

A special "case" committee formed by the National Association of Pension Funds
to raise criticisms by their members who have invested in Habitat, the home
furnishings group, said yesterday that its criticisms of a merger of Habitat
with Mothercare, the specialist retail chain, had been answered.

The National Association said that its case committee met yesterday with Morgan
Grenfell and Co, Habitat's merchant bankers.

The committee "requested amplification of the commercial logic of the merger; in
particular future organisation and geographic spread and product mix."

The Association said that "the case committee is now satisfied that these areas
have been studied in considerable depth by the Habitat and Mothercare
managements and their advisers."

"The case committee also understands that Mr Terence Conran (chairman of
Habitat) will be making a press statement in which he will cover the main points
raised by the committee. All Habitat shareholders will be able to ask questions
at the shareholders meeting next Thursday."

Last night advisers to Mr Conran said that the statement would not be ready
until this morning.

The settlement of differences has come at a time when the institutions were
growing angry over the £117.6m takeover of Mothercare by Habitat.

The apparent lack of explanation of the rationale behind a bid by a company,
which they had been investing in only since October, when Habitat came to the
stock market, had caused concern, particularly since Mothercare was a larger
company than Habitat.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1080 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Dumgoyne adds to its stake in Maclellan

SECTION: SECTION I; Companies and Markets; UK Company News; Bids and Deals; Pg.
14

LENGTH: 77 words

Dumgoyne Investments has increased its stake in P. and W. Maclellan Scottish
engineer supplier and paint manufacturer to 5.1 per cent.

The company said the stake has been bought with a view to future co-operation,
and informal meetings have taken place between the two companies.

There is no intention to bid for the company, and the shares have been bought
with a view to their long-term investment potential and high underlying net
asset figure.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1081 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

TOWN CENTRE BUYS

SECTION: SECTION I; Companies and Markets; UK Company News; Bids and Deals; Pg.
14

LENGTH: 44 words

Town Centre Securities has acquired the capital of Shorebeach Investment Company
by the issue to the vendors of 216,000 new ordinary shares of 25p.

The sole assets of the company are office premises of approximately 8,000 sq ft
at 18 York Place, Leeds.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1082 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Mr Ross lifts Sumrie stake to 28.42%

SECTION: SECTION I; Companies and Markets; UK Company News; Bids and Deals; Pg.
14

LENGTH: 71 words

Mr Harvey Ross has increased his stake in Sumrie Clothes in 710,500 shares,
representing 28.42 per cent, and he intends to lift his holding in the company
to 29.9 per cent.

As soon as it reaches this level Mr Ross intends to approach Sumrie with
"definite propositions." He hopes that this will be carried out shortly.

Mr Ross says he is currently looking for interesting propositions which fit into
the group.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1083 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

CON-ECOSSE

SECTION: SECTION I; Companies and Markets; UK Company News; Bids and Deals; Pg.
14

LENGTH: 55 words

Con-Ecosse and Co. the Edinburgh-based offshore engineers and contractors to the
oil and gas industry, has acquired Robertson and Ferguson, steel tube
manufacturers and structural steel fabricators of Glenrothes, Fife.

A cash offer of £651,000 was made for the Fife company and recommended for
acceptance by its directors.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1084 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Howden's increase passed

SECTION: SECTION I; Companies and Markets; UK Company News; Bids and Deals; Pg.
14

LENGTH: 215 words

At yesterday's meetings of Alexander Howden there was scarcely a sign of
opposition to the bid from Alexander and Alexander, the U.S. insurance broker.
Of late there has been rumours that the institutions were becoming uneasy over
the takeover.

An extraordinary meeting passed a resolution to increase Howden's authorised
capital in just over 30 seconds, without questions or contrary votes. Then the
shareholders trooped off to a smaller room at the other end of the Great Eastern
Hotel to assume their warrantholders' role.

The second meeting was called to consider a proposal to cancel the warrant
rights in exchange for £112.50 in cash. Mr K. Grob, chairman of Howden
immediately called for a poll. Although only 14,731 votes were cast --
representing under half the warrants -- the poll was 91.8 per cent in favour.

Mr Paul Kelly, a partner in stockbrokers L. Messel, had brought with him 7,300
proxies to cast against the proposal. But he abstained in the belief that as
fewer than half the total number of proxies had been cast in advance, he migh
thus be able to force an adjournment. The Alexander party and foreseen this
tactic and had ensured a quorum -- despite appearances -- by purchasing warrants
in the market.

The offer expires on January 22.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1085 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Companies and Markets; UK Company News; Bids and Deals; Pg.
14

LENGTH: 26 words

Sanger Group -- Scottish Amicable Life Assurance Society and its subsidiaries
have reduced their holdings to 240,000 ordinary shares (below 5 per cent).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1086 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Low value put on Ashton gems

BYLINE: BY KENNETH MARSTON, MINING EDITOR

SECTION: SECTION I; Companies and Markets; UK Company News; Pg. 14

LENGTH: 382 words

LATEST VALUATIONS placed by De Beers' Central Selling Organisation on samples
(13,240 carats) of diamonds from the big AK1 diamond pipe at the Ashton
discovery in Western Australia range from U.S.$7.75 to U.S.$8.40 per carat.

Announcing this in the latest quarterly report the Ashton joint venture leader,
CRA, says that the valuation was based on a sample from one location only.
Further samples from the southern section of the pipe are being obtained for
detailed valuation early this year.

This is a very low value by gem diamond standards and reflects the "near gem"
quality of the stones. It is also below earlier valuations made by the CSO and
others of samples taken from other parts of the property.

A decision is still awaited on the vexed question of who is to market the Ashton
diamond production, although marketing investigations are stated to be nearing
completion. It is reported that CRA will submit the available options so that
one can be selected.

This will then have to be approved by the Western Australian State Government.
A decision is expected within six months. Earlier it was being assumed that De
Beers would handle the marketing but while no decision has been reached there
has been Australian political opposition to the suggestion.

An agreement has been signed between the joint venture partners -- CRA, Ashton
Mining and Northern Mining -- for commercial mining operations and the latter's
possession of the respective mining tenements has been confirmed.

A feasibility study has been begun in preparation for a decision to go ahead
with the final design and construction of a large scale commercial treatment
plant. Engineering studies centre on a proposal for a plant with an initial
annual capacity of some 2.25m tonnes of kimberlite ore.

As already reported, it is hoped to start initial diamond production on a small
scale by the end of this year and to reach a full annual output of as much as
20m carats of diamond by 1986.

Meanwhile, further sampling work continues to confirm the expectation that the
prospect contains a very high concentration of generally small near gem and
industrial quality diamonds. The total of diamonds so far recovered in sampling
now amounts to 253,912 carats from 86,415 tonnes of ore.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1087 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

R. H. Lowe down at year-end

SECTION: SECTION I; Companies and Markets; UK Company News; Pg. 14

LENGTH: 192 words

A SEVERE reduction from £718,921 to £241,318 in pre-tax profits is reported by
Robert H. Lowe and Company, clothing manufacturer, for the year to October 30
1981. The final dividend is raised, however, from 2.057p to 2.6p for a total of
3.265p compared with 2.722p.

Turnover was down from £7.91m to £6.94m.

First half pre-tax profits fell from £303,015 to £132,394.

The board says that in recent months there has been a marked improvement in the
group's trading position, and all production units are now working fulltime.
The forward order position has also shown a degree of improvement, compared with
1981, and sufficient orders have been placed to ensure continued production well
into 1982.

With these factors in mind, the board has every reason to look forward to a
satisfactory year's trading, providing the economic climate remains favourable.

There was a year-end tax credit of £189,470 (£380,491 charge), leaving
attributable profits higher at £430,788 compared with £338,430. Stated earnings
per 25p share rose from 10.54p to 13.45p.

Attributable profits on a CCA basis were £233,447 (£89,413).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1088 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

ACC meeting next Friday

BYLINE: BY JOHN MOORE

SECTION: SECTION I; Companies and Markets; UK Company News; Pg. 14

LENGTH: 552 words

Lord Grade, chairman of Associated Communications Corporation, the
entertainments conglomerate, gained the approval of voting shareholders to
adjourn the EGM authorising the record compensation package to the group's
former managing director Mr Jack Gill.

The meeting has been adjourned until 10 am on January 15, at the group's
headquarters in Great Cumberland Place.

In a statement to shareholders, before he put the resolution for the
adjournment, Lord Grade said: "You will know from reports in the Press that
since the notice was sent to you the representatives of the Post Office Staff
Superannuation Fund has requested the High Court, first, to restrain the company
from making all or any part of the payment to Mr Gill that is the subject of the
first resolution."

"Secondly, the house in which Mr Gill lives should not be sold to him on the
terms set out in the second resolution. And, thirdly, to quash any resolution
passed by this meeting. As you are aware the whole matter is the subject of
proceedings which come before the High Court next Monday, January 11 1982. It
would seem prudent that the meeting should be adjourned until the outcome of the
legal proceedings next Monday is known and considered."

Mr Norman Collins, an ACC director, seconded the motion for the adjournment.

Lord Grade told shareholders that the resolution for the adjournment would be
decided by a show of hands, "to obtain a speedy result," and added that such a
vote would not prevent members attending from demanding a poll. He told the
nonvoting shareholders that they were not entitled to vote.

After the resolution was adopted, Sir Michael Clapham, the former chairman of
BPM Holdings, the holding company of the Birmingham Post and Mail, which owns 5
per cent of ACC voting shares, said that BPM had indicated that it might call
for a poll on the resolutions authorising the payments to Mr Gill, but was not
planning to ask for a poll on the adjournment.

He said to Lord Grade, that "the time will come later when you give up a proper
explanation," for the departure of Mr Gill, at which time BPM will consider
whether a poll is necessary.

At the start of yesterday's meeting, which lasted barely five minutes, voting
shareholders were asked by Lord Grade to approve the presence of non-voting
shareholders.

The resolutions regarding the payment to Mr Gill read as follows:

"1. That pursuant to section 191 of the Companies Act 1948 the proposed payment
to Mr Jack Forest Gill of the sum of £560,000 by way of compensation for loss of
his office as a director of the company and of all other offices and employments
with the company and its subsidiary and associated companies together with
interest on the said sum at the rate of 6.25 per cent per annum from December 7
1981 to the date of payment, be and the same is hereby approved.

"2. That the sale to Mr Jack Forest Gill by the company's subsidiary, Bentray
Investments, of the freehold property at Kingswood, Surrey, owned by Bentray and
occupied by Mr Gill since July 1975 for the sum of £165,822 be and the same is
hereby approved."

These resolutions will still be before ACC shareholders at next Friday's
meeting, which depending on the outcome of Monday's court proceedings may not
even then be voted on.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1089 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Ley's £2.4m in the red at year end

SECTION: SECTION I; Companies and Markets; UK Company News; Pg. 14

LENGTH: 241 words

DESPITE A much better second six momths Ley's Foundries and Engineering still
finished the year to September 30 1981 in the red, the pre-tax figure emerging
at £2.43m, compared with a profit of £536,507.

A better second half was anticipated by the directors in their interim report
but they said at the time that a further improvement in orders was necessary
before the group returned to profitability.

At midyear a taxable loss of £1.61m was reported. However, the directors now
state that since the year end a substantial overstatement of stock value which
had taken place over a long period had been discovered in a subsidiary, Beeston
Boiler Company (Successors).

They say that of the previously undiscovered loss it was considered that
£350,000 should be apportioned to the first half which increases the reported
pre-tax deficit for that period to £1.96m, and leaves the second six months loss
at £466,000. Comparisons have been adjusted.

Turnover for the year declined from £28.08m to £24.94m. Tax took £48,746
(£147,875) and after extraordinary debits last time of £2.32m and preference
dividends of £61,950 (same) the atributable loss for ordinary shareholders came
through at £2.54m (£1.99m).

Loss per 25p share was 24.48p (3.15p earnings). After omitting the interim
dividend the directors are reducing the final to 0.5p net -- for 1979-80 an
interim of 1.05p was followed by a final of 0.95p.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1090 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

RTZ ACQUIRES MORE WARD

SECTION: SECTION I; Companies and Markets; UK Company News; Pg. 14

LENGTH: 41 words

Rio Tinto Zinc acquired a further 700,000 shares in Thomas W. Ward on Thursday
and its stake now stands at 26.1 per cent.

RTZ paid 230p per share (cum dividend) which equals the value of its increased
£130m offer, plus the final dividend.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1091 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Heavitree expands to £686,850

SECTION: SECTION I; Companies and Markets; UK Company News; Pg. 14

LENGTH: 102 words

Pre-tax profits of the Exeterbased Heavitree Brewery increased from £594,730 to
£686,850 for the year ended October 31 1981, on turnover of £3.63m, against
£3.28m.

From earnings per £1 share of 72.2p (63.2p) the dividend is stepped up to 22.5p
(20.4p) net with a final distribution of 15.9p.

After tax of £330,118 (£304,727), exceptional credits amounting to £37,977,
against £1,130 and an extraordinary debit, last time, of £36,186, the
attributable balance emerged well ahead at £394,709, compared with £254,947
previously.

On a CCA basis after-tax profits are shown as £355,911.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1092 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Stanelco chief expects loss at interim stage

SECTION: SECTION I; Companies and Markets; UK Company News; Pg. 14

LENGTH: 311 words

Trading during the first six months of the current year at Stanelco, electronic
and mechanical equipment company, which came to the USM last June, has been very
slow and Mr John Wilcox-Jones, the acting chairman, tells members he anticipates
a loss for the period.

The level of enquiries and quotations is encouraging, but the long, lead-times
associated with investment projects in the group's main areas, make it
impossible, he says, to predict confidently the level of turnover that can be
expected during this year.

He adds that directors are convinced that Stanelco's technical expertise will
ensure that a significant proportion of this business, as it materialises, will
be obtained by the company.

In his annual report, the chairman explains that the company is currently
awaiting test results of the installation of its optic fibre furnace at British
Telecom's research loboratories near Ipswich. There has been a delay of about
six months in the construction of the building to house the optic fibre drawing
tower which holds the company's equipment and this area of its activities has
therefore to date "not been able to make the expected contribution to the
company's turnover."

Stanelco, he states, has been awarded a Department of Industry research grant
for work on optic fibre technology from the £25m research fund.

Since the signing of the accounts in November the company has instituted a claim
against a third party, a major international company, for a sum in excess of
that presently claimed against the company -- approximately £212,000.

The serious technical problems associated with this claim have made sales in
this area difficult to achieve in the first half of the year, Mr Wilcox-Jones
says.

Mr W. M. Barakat, a vicepresident of Solidyne and the finance director of
Stanelco, has recently left the group.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1093 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Results due next week

SECTION: SECTION I; Companies and Markets; UK Company News; Bids and Deals; Pg.
14

LENGTH: 975 words

Analysts expect interim pre-tax profits of around £46m against £38.6m last time
from Thorn EMI on Thursday. TV rentals has held on to most of its subscribers,
but the expansion of the new VCR business is thought to have led to slimmer
margins. Capital expenditure on VCRs has been very high. Gearing is now
thought to be over 50 per cent, with fears of a rights issue weighing on the
share price. Domestic appliances are holding up well despite the consumer
recession, though there has been some cut back in capacity. Lighting in
particular is expected to show the benefits of rationalisation. Full year
pre-tax profits of about £110m are on the cards, but depreciation costs in the
VCR area will be significant.

There is a wide range of profit forecasts for Racal Electronics, whose interim
figures will be reported on Wednesdays. Something in the region of £45m pre-tax
is the most popular estimate, against £26.5m last year. The uncertainties are
based on currency swings, and the completion of large contracts. Much of the
improvement should come from Decca, with benefits coming through from the
substantial reorganisations. In the tactical radio market Racal has come under
strong pressure from Plessey, but on the CAD/CAM side, Redac is thought to have
gained directly at the expense of Quest. Data communications have been picking
up, though AT and T will be competing strongly following deregulation.

If the year's trading were the whole of the matter, most observers would be
expecting S. and W. Berisford to do little more than match the £36.1m it earned
before tax in 1980. The food processing businesses are thought to have had an
awful year, and times have not been easy on the commodity front. It now seems
likely, however that Berisford will treat its 40 per cent share in the profits
of British Sugar as an associate. Berisford's bid for British Sugar is now in
abeyance until the summer, when -- unless British Sugar can reach a surprising
accommodation with Ranks Hovis -- a renewed assault from Berisford is widely
expected to succeed. One relic of the 1981 campaign is Berisford's dividend
forecast of 7.5p net; further generosity is not expected.

A slump in revenue from provincial newspapers is expected to depress profits at
Asociated Newspapers for the year ended September 30. The company reports on
Thursday and the market is looking for pre-tax profits of £18m to £19m against
£22.5m last time. The provincials' contributions to profits could be half last
year's level of £15m as a result of high newspaper costs, bingo wars ane
plummeting advertising revenue. It appears, however, that the decline may have
hit bottom. Woes in the newspaper division have been mitigated by some £8m in
loss-elimination from the closure of the Evening News late in 1980. Other
divisions appear to be marking time. Hopes for a return to good growth over the
next two or three years are pinned on the £12m launch of the Sunday Mail next
May and continued improvement in advertising revenue. The dividend is expected
to be held at 10.4p.

Other companies reporting next week include Reo Stakis, SGB and M and G, whose
respective preliminary statements are due on Wednesday, Tuesday and Thursday,
and Allied Colloids (Wednesday), Dixons Photographic (Thursday), Hogg Robinson
(Tuesday), Magnet and Southerns (Monday), Raybeck (Friday) and H. Wigfall
(Friday), all of whom are bringing out interim figures.
Announcement Dividend (p) *
Company Last year This year
due Int. Final Int.
  FINAL DIVIDENDS
Amal. Tin Mines of Nigeria Tuesday 6.0+ - -
(Holdings)
Associated Newspapers Group Thursday 4.5 5.9 4.5
Barr (A. G.) Monday 1.25 3.6375 1.25
Berisford (S. and W.) Thursday 2.16667 4.33333 2.5
Bett Brothers Tuesday 1.2 1.9 1.2
Braid Group Monday - - -
Claverhouse Investment Trust Monday 2.25 4.15 2.25
Daily Mail and General Trust Thursday 11.0 ++ 16.5 11.0
Dewhurst and Partner Thursday - 0.15 -
French (Thomas) and Sons Thursday 2.0 3.0 2.25
Investors Capital Trust Tuesday 1.5 1.55 1.5
Kenning Motor Group Tuesday 1.75 3.75 1.75
Lincroft Kilgour Group Tuesday - - -
M. and G. Group Thursday - 10.0 5.0
M. and G. Dual Trust Wednesday 8.5 9.85 9.05
Muirhead Thursday - - 1.0
Oakwood Group Tuesday - 4.5 2.0
Raeburn Investment Trust Friday 2.0 4.35 2.0
SGB Group Tuesday 2.3 3.0 2.3
Stakis (Reo) Organisation Wednesday 0.4 1.0 0.45

  INTERIM DIVIDENDS
Allied Colloids Group Wednesday 0.644 2.087
Boardman (K. O.) International Tuesday - 0.25
Caledonian Associated Cinemas Tuesday 2.0 7.0
Cantora Thursday - 0.01
Cosalt Wednesday 1.5 2.0
Courts Furnishers Monday 1.75 1.95
Danae Investment Trust Wednesday 1.6 2.4
Diamond Stylus Friday - -
Dixons Photographic Thursday 1.3125 2.17875
Ellis and Everard Monday 2.27273 3.63636
Greene King and Sons Thursday 2.1 4.2
Gresham Investment Trust Wednesday 0.95 2.35
Hogg Robinson Group Tuesday 3.0 3.0
Hollas Group Tuesday 2.0 4.0
Jones Stroud (Holdings) Thursday 2.0 3.2
Magnet and Southerns Monday 2.0 3.0
Racal Electronics Wednesday 1.15 3.4
Ratners (Jewellers) Tuesday 0.67 1.63
Raybeck Friday 1.131 1.13
Samuel (H.) Monday 1.5 4.75
Stead and Simpson Tuesday 1.0 2.5
Stoddard Holdings Friday - -
Symonds Engineering Thursday 0.2225 0.0775
Thorn EMI Thursday 4.05 10.575
Wheway Watson Monday - 0.05
Wigfall (Henry) and Son Friday - 6.0

  INTERIM FIGURES
Cawdaw Industrial Holdings Friday

* Dividends shown net pence per share and adjusted for any intervening scrip
issue.

+ Total of first and second interim dividends.

++ Includes a nonrecurring dividend of 1.5p.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1094 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Wood & Sons: pref. dividend explanation

SECTION: SECTION I; Companies and Markets; UK Company News; Pg. 14

LENGTH: 162 words

Wood and Sons, the Stoke on Trent pottery company which was put into the hands
of the receivers at the beginning of December, explains in a letter the
circumstances surrounding the declaration of a preference dividend on October
22.

The company -- which showed a loss of £288,000 in the first half of 1980 -- said
that the dividend declaration was made "responsibly and in good faith having
regard to all the facts known at the time."

In November, however, the company's cash situation rapidly deteriorated in
circumstances which were not foreseeable at the time the statement was made.
The company's auditors were called in last November to report on the financial
situation and the company said it soon became apparent that the reserves from
which the preference dividend could be paid were exhausted, and therefore it had
no option but to pass the dividend.

The company said that it had no alternative but to ask its bankers to appoint a
receiver.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1095 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Strong world growth for GRE

SECTION: SECTION I; Companies and Markets; UK Company News; Pg. 14

LENGTH: 407 words

STRONG GROWTH in 1981 on its worldwide life and pensions business is reported by
Guardian Royal Exchange Assurance, with new annual premiums improving by 13 per
cent from £37.6m to £42.4m, and single premiums jumping 64 per cent from £19.7m
to £32.3m. New sums assured were 43 per cent up at £4.8bn.

Ordinary life business in the UK was buoyant with annual premiums up by a
quarter to £13m. Sales of the group's Dynamic Cover plan were particularly
buoyant. But annual premium group pensions remained level at £14.8m.

The company had a good year for self-employed pensions business, with annual
premiums rising by a quarter from £550,000 to £700,000, and single premiums by a
half from £650,000 to £1m.

The group's unit-linked life and pensions operations also had a good year. New
annual premiums on the ordinary linked life business run by its subsidiary GRELL
nearly doubled from £450,000 to £800,000, while single premiums nearly trebled
from £2.8m to £7m.

The managed fund subsidiary for pooled pension fund investment had a good year
thanks to its excellent investment record, with new premium income up 50 per
cent to £18m in a year when the recession has severely limited pension growth.

The Eagle Star Group also reports buoyant single premium business for 1981 with
worldwide premiums up 50 per cent from £70.3m to £105.3m. But new annual
premiums worldwide rose only marginally from £38.9m to £39m.

New annual premiums on UK business showed a slight fall from £5.9m to £5.7m,
with good growth in building society linked savings schemes being offset by
lower mortgagerelated business.

Self-employed annual premiums were unchanged at £600,000 but single premiums
jumped 60 per cent to £1.7m. UK group pension business was dull with annual
premiums on insured schemes falling 7 per cent to £20.4m from £21.9m. However,
group single premiums rose 19 per cent from £5.8m to £6.9m.

Immediate annuity business in the UK remained static at £51.4m, but there was a
substantial increase in single premium bond business, mainly from re-investment
of maturing bonds, and amounts rose from £800,000 to £7.1m.

The managed fund subsidiary, Eagle Pension Funds, reported a slight decline in
annual premiums from £2.8m to £2.5m, but a fourfold jump in single premiums from
£4.4m to £18m. A further £4.4m of annual premium came from transfers from
insured schemes.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1096 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

£11.6m Devon road for Monk

SECTION: SECTION I; Contracts; Pg. 15

LENGTH: 225 words

The south west region of the Departments of the Environment and Transport has
placed an £11.6m contract with A. MONK AND CO, for the construction of North
Devon link road, stage 1. It is located to the north of the existing A373
county road between the M5 and Tiverton, and terminates at a roundabout on the
A396 Bolham Road north of the town.

The work is the first stage of a trunk road project planned to terminate at
Barnstaple. Samford Peverell, Halberton and Tiverton itself will be relieved of
through traffic.

The link road is 10.3 km long and will be a two lane dual carriageway in
flexible construction with over 3.6 km of single carriageway wide diversions.
There is a grade separated interchange at Holbrook Lane and other retained side
road crossings grade separated.

Included in the contract are 13 bridges, all with spread footings and in situ
concrete decks, except the railway bridge which has precast pretensioned deck
beams. Among the structures are six overbridges, one underbridge, a railway
overbridge, an accommodation overbridge, a canal culvert and three multispan
culverts. Some 950,000 cu metres of excavation is involved, with about 780,000
cu metres of embankment construction. The contract is expected to be completed
in the spring of 1984. Consulting engineers and Frank Graham and Partners.

LANGUAGE: ENGLISH

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1097 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Contracts; Pg. 15

LENGTH: 152 words

CAP has been awarded a contract, believed to be worth about £1m for the supply
of a system for rates assessment and collection in Northern Ireland. The
company will design, develop and maintain the applications software and provide
installation support and maintenance for the system. As the prime contractor, it
will be responsible for the supply of an IBM 4331 computer configuration and a
network of IBM 3600 financial terminals, running under IBM's CICS communications
software and DL/1 data base management system. The main system is due to be
delivered and installed in Belfast in August 1982 together with sets of
financial terminals for installation in local rates collection offices
throughout Northern Ireland. The system will generate rate demands at the
Rating Division's HQ in Belfast and, as at present, payments will be accepted
annually, twice yearly or by monthly instalments.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1098 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Contracts; Pg. 15

LENGTH: 72 words

A renewal forklift truck hire contract worth more than £387,000 has been awarded
to HARVEY PLANT'S Southampton branch by H. W. Richards Stevedoring Company. It
includes the supply of nine Coventry Climax, Komatsu and Clark International
trucks, of 3,000 lbs to 5,000 lbs, plus a Lancer Boss lift truck capable of
handling loads of up to 25 metric tonnes. All 10 forklifts will be used for
cargo handling at Portsmouth Docks.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1099 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Contracts; Pg. 15

LENGTH: 30 words

CARSON OFFICE FURNITURE has been awarded a £72,000 contract for supply of
furniture, screens and fittings for the new Northampton head office of the G-P
Inveresk Corporation.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1100 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Contracts; Pg. 15

LENGTH: 106 words

JOHN HOWARD AND CO< Chatham, has been awarded a contract by the Dover District
Council for coast protection work at St. Margaret's Bay. Valued at £320,000, the
work includes the reconstruction of groynes and the supply and placing of beach
nourishment material and precast concrete armouring units against the foot of
the cliff. Work is to start immediately for completion in 45 weeks.

Howards is working on the construction of a mass concrete sea wall, a rear wave
wall and reinstatement of promenade areas at Margate for the Thanet District
Council. This contract, valued at £400,000 is due for completion in June.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1101 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Contracts; Pg. 15

LENGTH: 156 words

BP has awarded SCICON a contract to supply application software to aid the
operation of the Magnus oilfield. The contract, worth over £300,000, is due for
completion by the end of this year. A Wesdec 6 computer system will be supplied
and installed by Wescode Systems Dual Digital PDP 11/70's will provide a central
monitoring facility offshore and will communicate via serial links to a number
of microprocessor based systems on the platform and to a shore based PDP
11/70.The platform and short computers will have similar databases and changes
will be transmitted to the onshore machine as they occur. The system will
provide the operator with dynamically updated colour displays for monitoring of
the production plant and utilities. The additional software and displays to be
provided by Scicon will monitor well operations and testing, provide remote
choke operation for rate control, and daily production reports.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1102 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Contracts; Pg. 15

LENGTH: 72 words

BRIGGS AMASCO has won nearly £1m worth of roofing work on electronics factories
-- the latest worth nearly £250,000 for NEC Semiconductors UK. This is the
Japanese-owned company which is setting up in Livingston New Town, situated on
the M8 just outside Edinburgh. Briggs Amasco's contract, for Wimpey Management
Contractors, involves putting its Perfrisa insulated steel panels on the roof
and walls of the new factory.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1103 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Contracts; Pg. 15

LENGTH: 53 words

Work is starting on 13 workshop units, eight of 46 sq metres and five of 93 sq
metres at Canal Road, Bradford, West Yorks, for English Industrial Estates. A
design and build contract worth about £177,500 has been awarded to FIRTH
CONSTRUCTION, Doncaster. The premises should be ready for occupation in May.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1104 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Contracts; Pg. 15

LENGTH: 55 words

A completely automatic position-monitoring system designed for the first tension
leg platform now under construction for Conoco is to be provided by ORE. The
system will be able to monitor the oil platform's movements to an accuracy of
0.5 metre within a maximum radius of 30 metres. The contract is valued at
£70,000.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1105 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Contracts; Pg. 15

LENGTH: 78 words

RENOLD FLUID POWER has won an order for 380 hydraulic motors from Blaw Knox,
Rochester, as part of an order for 180 asphalt road pavers and spares worth
nearly £8m bound for Iraq. Two of Renold's HMO8 high torque, low speed motors
will be used on each of the road pavers, to operate the conveyers carrying
asphalt from the hopper to the augers, and driving the two augers which spread
the asphalt evenly on the road surface prior to pre-compaction by the screed.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1106 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Contracts; Pg. 15

LENGTH: 80 words

FISHER CONTROLS INTERNATIONAL INCORPORATED subsidiary, Fisher Service Company,
has executed a definitive agreement with Fahd Altobaishi and Co. of Riyadh,
Saudi Arabia. The agreement calls for the establishment of a service centre and
a manufacturing facility to supply high technology control valves and related
equipment to Saudi Arabia. Fahd Altobaishi and Co. is an international
investment and industrial concern and has represented Fisher in Saudi Arabia for
many years.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1107 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Contracts; Pg. 15

LENGTH: 104 words

HAWKER SIDDELEY DYNAMICS ENGINEERING has been awarded a contract worth £350,000
by Coal India for two systems to monitor automatically the gas levels in
underground coal mines.The two systems, which will be delivered in the latter
half of 1982, use a microprocessor-based surface control desk and the
information on parameters such as the levels of methane and carbon dioxide and
air velocity are transmitted by the telemetry system from outstations situated
underground throughout the mines. The systems will have a full battery power
stand-by enabling monitoring of gas levels in the event of mains power failure.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1108 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Contracts; Pg. 15

LENGTH: 109 words

Two contracts worth over £1m, one for a health centre in Penrith, the other for
homes at Eston, Cleveland, have been awarded to the north east region of JOHN
LAING CONSTRUCTION. The Combria Area Health Authority has awarded a £745,000
contract for the construction of a single-storey health centre on the site of
the Penrith Hospital just off the A6. Work has begun and should be completed in
two years. At Eston 18 timber-frame dwellings are to be built for Langbaurgh
Borough Council at the Bankfields Estate. Work on the homes, two seven person,
and 16 five or four person units, has begun and will be finished in about nine
months.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1109 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SPAIN

SECTION: SECTION I; Pg. 15

LENGTH: 75 words

Price
January 8 % + or -
Banco Bilbao 337 +2
Banco Central 338 +3
Banco Exterior 303
Banco Hispano 325
Banco Ind. Cat. 115
Banco Santander 347
Banco Urquijo 213
Banco Vizcaya 355
Banco Zaragoza 216
Dragados 127
Espanola Zinc 60
Fecsa 60.7 +2
Gal, Preciados 43
Hidrola 66.5 +2.5
Iberduero 53
Petroleos 89.7 +0.5
Petroliber 100 -1
Sogefisa 40
Telefonica 72 +1
Union Elect. 62.5 -2

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1110 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Changes at Geest Holdings

SECTION: SECTION I; Appointments; Pg. 15

LENGTH: 64 words

Mr C. J. Vivian will be retiring as a director of GEEST HOLDINGS and its
subsidiaries as from August 31. He will remain as an advisor to Geest Computer
Services. To prepare for this, it has been arranged that as from January 1, the
executive functions of his role as managing director and chief executive are to
be allocated between Mr L. W. van Geest and Mr S. R. Coltman.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1111 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Appointments; Pg. 15

LENGTH: 53 words

Mr Michael Toulmin, general manager, has been appointed deputy managing director
of SHEFFIELD NEWSPAPERS. Mr Michael Hides, editor, Morning Telegraph; Mr David
Flynn, editor of The Star; and Mr Brian Knox-Peebles, marketing director of
United Newspapers have been appointed directors of Sheffield Newspapers.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1112 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Appointments; Pg. 15

LENGTH: 32 words

Mr A. B. Johnson has been appointed company secretary of RENTOKIL GROUP. Mr G.
B. Foote and Mr J. F. Morton are promoted managing directors of Rentokil, the
main UK operating subsidiary.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1113 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Appointments; Pg. 15

LENGTH: 12 words

Mr Ian Rodger, has been appointed company secretary of BOUSTEAD.

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January 9, 1982, Saturday

SECTION: SECTION I; Appointments; Pg. 15

LENGTH: 27 words

Mr Tim Sherwen has been appointed managing director of THOMAS NELSON,
educational publisher. He succeeds Mr John Jermine who becomes executive
chairman.

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1115 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Appointments; Pg. 15

LENGTH: 17 words

Mr L. Haigh has been appointed to the board of NEEDLE INDUSTRIES as director
technical division.

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1116 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Appointments; Pg. 15

LENGTH: 25 words

Mr Alan Clarke has joined CARIPLO (Cassa de Risparmio delle Provincie Lombarde)
as syndication manager. He was formerly with Chase Manhattan.

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1117 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Appointments; Pg. 15

LENGTH: 76 words

At LOUIS DREYFUS AND CO. Mr Jean Louis-Dreyfus has retired as chairman but
remains a non-executive director. Mr R. E. Cornwell has been appointed chairman,
Mr R. J. Henderson managing director and Mr G. J. Peirson a director. Mr J.
Brady, Mr D. R. Corke and Mr J. P. Mayhew have resigned as directors. Mr Brady
has been appointed managing director of Louis Dreyfus Trading, and Mr Corke, Mr
Mayhew and Mr Peirson have been appointed directors.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Appointments; Pg. 15

LENGTH: 36 words

At SAUDI BANQUE, London, Mr Donald F. Rogers has been appointed manager
administration and operations division, and Mr David L. Dale is appointed
manager syndications in the corporate finance and credit division.

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1119 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Appointments; Pg. 15

LENGTH: 11 words

Mr T. D. Cooper has been elected a director of ASPREY AND CO.

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1120 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Appointments; Pg. 15

LENGTH: 41 words

MINSTER ASSETS has appointed Mr P. A. Cox and Mr J. N. Fuller-Shapcott as
directors. Mr Cox is managing director of Minster Insurance Company and Mr
Fuller-Shapcott is managing director of the corporate finance department of
Minster Trust.

LANGUAGE: ENGLISH

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1121 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Wall St firm but cautious

SECTION: SECTION I; Companies and Markets; World Stock Markets; Pg. 16

LENGTH: 343 words

STOCK PRICES closed higher in moderate trading on Wall St. yesterday, although
investors turned cautious while awaiting developments in two major Antitrust
cases involving ATT and IBM as well as the release of the Weekly Money Supply
figures.

The Dow Jones Industrial Average finished 4.75 up at 866.53, reducing its loss
on the week to 8.47, while the NYSE All Common Index, at $69.36, rose 34 cents
on the day but was still off $1.75 on the week. Advances led declines by a near
two-to-one majority in a volume of 42.05m (43.41m) shares.

ATT agreed to divest its local telephone companies, settling its seven-year
dispute with the Justice Department. The Government asked that the Court
dismiss its Antitrust suit against IBM.

ATT said it had spent $360m in its defence against the Justice Department's
suit. ATT was halted at $58 7/8, up $ 1/2. It did not resume trading.

After the Stock Market closed, the New York Fed announced M-1B fell $1.4bn in
the week ended December 30.

In other economic news, the Labour Department reported that U.S. unemployment
rose to 8.9 per cent in December from 8.4 per cent in November, reaching the
highest level in more than six years.

General Public Utilities, the day's most active stock, dipped $ 5/8 to $6 1/2 --
it attributed the decline to a low level radiation leak at its damaged Three
Mile Island nuclear power plant near Harrisburg, PA.

Warner Communications, the second most active stock, moved up $3 5/8 to $55 3/4,
due to a forecast of strong sales by its Atari subsidiary.

Consolidated Foods shed $ 1/8 to $30 -- it agreed to buy Sav-a-Stop for $16 a
share. Sav-a-Stop held unchanged at $14 7/8 on the American SE.

El Paso Gas advanced $2 to $27 3/8 in active trading after a Circuit Court of
Appeals made a ruling favourable to the company on Natural Gas pricing.

THE AMERICAN SE Market Value Index rose 1.32 to 310.82. Volume 4.326m (4.085m)
shares.

Dorchester Gas shed $ 1/2 to $16 1/8 -- it ended a joint energy exploration pact
with New England Energy.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 9, 1982, Saturday

Canada

SECTION: SECTION I; Companies and Markets; World Stock Markets; Pg. 16

LENGTH: 56 words

Slightly higher after three days of losses, as investors waited for the U.S.
Money Supply figures.

The Toronto Composite Index rose 5.7 to 1,892.7, Minerals and Metals 2.4 to
1,771.1, Oils and Gas 13.6 to 3,541.5 and Banks 2.50 to 348.68. But Golds
dipped 46.6 to 2,713.9, Utilities 0.27 to 231.93 and Papers 0.54 to 185.78.

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Financial Times (London,England)

January 9, 1982, Saturday

Tokyo

SECTION: SECTION I; Companies and Markets; World Stock Markets; Pg. 16

LENGTH: 97 words

Share prices declined on scattered liquidation of margin positions in a quiet
market.

The Market Average shed 29.00 to 7,662.22 on a light volume of 290m (280m)
shares.

Precisions, Motors, Light Electricals, Communications, Drugs and "Large Capital"
shares fell but some "Low-Priced" and "Incentive-Backed" issues were bought
selectively.

Non Ferrous Metals, Fisheries, Synthetic Fibres, Chemicals, Machineries and
Speculatives were higher.

High Technology issues, such as Optical Fibres, Manufacturers of New Ceramics
and Robot Makers, fell on profit-taking.

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Financial Times (London,England)

January 9, 1982, Saturday

Hong Kong

SECTION: SECTION I; Companies and Markets; World Stock Markets; Pg. 16

LENGTH: 64 words

Slightly firmer but below the day's highs with gains pared by some late selling
ahead of the weekend. Trading was active in the afternoon.

The market firmed initially on carryover demand from Thursday's advance. In
addition, there was a general lack of sellers with renewed Institutional buying
underpinning prices.

Leaders closed mixed, reflecting the late selling.

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1125 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Australia

SECTION: SECTION I; Companies and Markets; World Stock Markets; Pg. 16

LENGTH: 115 words

Prices continued their downward trend as the All Ordinaries Index shed 6.1 to
577.0 and market leader BHP closed 7 cents easier at $ A9.98.

Most Oils weakened, Metals and Coals lost ground and several of the better known
Industrials retreated in slow trading.

AOD rose 4 cents against the general trend to $ A1.64, while Hartogen slid 40
cents to $ A6.20.

Retailers were steady and Brewers were down.

H. C. Sleigh, however, added 2 cents at $ A1.20, after a special sale by Bain
and Co. before the start of trade of over 1.9m shares at $ A1.20.

Alan Coffey Motors had a special sale of almost 800,000 shares at $ A1.32, well
below the market bid price of $ A1.45.

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Financial Times (London,England)

January 9, 1982, Saturday

Germany

SECTION: SECTION I; Companies and Markets; World Stock Markets; Pg. 16

LENGTH: 103 words

Leading shares closed steady after a moderately active session which saw the
Commerzbank Index rise 5.4 to 680.28.

Steels continued firm.

In strong Engineerings, KHD gained DM 4 to 178.50, GHH DM 2.20 to 212.20 and
Linde DM 3 to 314.

In Electricals, AEG shed DM 0.30 to 45.10 on uncertainty over the Soviet
pipeline deal.

Among weak Stores, Karstadt fell DM 4 to 183 -- it reported parent company
turnover up 3.2 per cent in 1981.

Public Authority Bonds showed fluctuations of plus DM 0.30 and minus DM 0.70.
The Bundesbank sold DM 21m of stock.

Mark Eurobonds were steady in quiet trading.

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Financial Times (London,England)

January 9, 1982, Saturday

Paris

SECTION: SECTION I; Companies and Markets; World Stock Markets; Pg. 16

LENGTH: 120 words

Share prices tended firm in moderately active trading.

Institutional buyers were encouraged by the recent statements of Finance
Minister, Jacques Delors, on the economy, such as his goal of an annual
inflation rate of 10 per cent by the last quarter of 1982.

Yesterday's purchase by the Bank of France of around FFr 10bn of First Category
Paper was seen as essentially technical and did not influence trading.

Banks, Foods, Electricals and Oils were firmer, while Cars, Rubbers and Stores
tended

Esso SAF gained FFr 10.90 to 212, while Cie Generale des ets Michelin lost FFr
11 to 676 and Peugeot SA dropped FFr 6 to 177.

Foreign stocks were mostly firmer, except for Gold Mines which were mixed.

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Financial Times (London,England)

January 9, 1982, Saturday

Switzerland

SECTION: SECTION I; Companies and Markets; World Stock Markets; Pg. 16

LENGTH: 80 words

Leading Industrials advanced on some Foreign buying support, including Bearer
shares of BBC, Ciba-Geigy, Sandoz and Nestle.

Hoffmann-La Roche and Feldschloesschen featured gains among unofficially traded
stocks.

In a quiet Foreign sector, Dollar stocks traded around Thursday night's New York
close. Buying interest in Dutch Internationals focussed on Hoogovens.

Germans posted modest gains, and Elf Aquitaine moved higher in otherwise
inactive European Oils.

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Financial Times (London,England)

January 9, 1982, Saturday

Milan

SECTION: SECTION I; Companies and Markets; World Stock Markets; Pg. 16

LENGTH: 45 words

Generally firmer in moderately active trading. There was a general recovery
from Thursday's depression after Bastogi-Irbs Spa was suspended on share
markets.

Banks, Insurances and Financials led the upward trend.

Bonds were mixed in reduced trading.

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Financial Times (London,England)

January 9, 1982, Saturday

Johannesburg

SECTION: SECTION I; Companies and Markets; World Stock Markets; Pg. 16

LENGTH: 41 words

Gold shares turned mixed towards the close after a firm opening in very thin
trading.

Rustenburg Platinum shed 20 cents to 510 cents after the chairman's statement
which forecast a sharp fall in profits.

Industrials were very quiet.

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Financial Times (London,England)

January 9, 1982, Saturday

Singapore

SECTION: SECTION I; Companies and Markets; World Stock Markets; Pg. 16

LENGTH: 64 words

Share prices closed narrowly mixed on bouts of profit-taking and buying support
in fairly active trading.

Far-East Levingston rose 15 cents to $ S6.70 and Metro 35 cents to $ S8.45.

Hotels were slightly lower, Properties mixed, Commodities steady and Second
Trading Section higher, General Ceramic moved up 40 cent to $ S6.65, but City
Devlopment shed 10 cents to $ S4.38.

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1132 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Justice drops case against IBM

BYLINE: BY PAUL BETTS IN NEW YORK

SECTION: SECTION I; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 356 words

HIGHLIGHT: REVIEW FINDS SUIT 'WITHOUT MERIT'

THE U.S. Justice Department has dropped its 13-year anti-trust case against
International Business Machines (IBM), the world's leading computer group.

The decision was announced in a Federal Court in Manhattan which has been
hearing one of the longest anti-trust cases in U.S. American history.

The Justice Department said the decision had been taken after a six-month review
of the case had been completed and the department concluded that the suit was
"without merit."

Mr William F. Baxter, the head of the Justice Department's anti-trust division
appointed by President Ronald Reagan last year, said the decision to dismiss the
IBM case reflected "a sense in which the anti-trust division is backing off from
certain anti - trust policies of earlier Administrations."

IBM had vigorously defended itself against the Justice Department's attempts
since 1969 to break up the giant computer company, which it accused of
monopolising the market.

Mr Baxter said that anti-trust law had been used over the years "to pursue a
variety of objectives that are inconsistent" with what he termed were the values
and goals of the law.

He said the IBM case was an example of earlier anti-trust enforcers "trying to
push the boundaries" of anti-trust prosecution beyond the law. He added that he
felt much of the evidence against IBM was "flimsy." He also claimed it was a
"sheer coincidence" that his department had settled yesterday both the AT & T
case and the IBM suit.

IBM last night was elated by the dismissal of the case, which began in the last
days of the Johnson Administration. Mr Thomas Barr, IBM's chief counsel, said
in court: "Today the anti-trust division has concluded that what IBM said 13
years ago . . . IBM has been completely vindicated."

But IBM still faces an action by the European Commission, which has complained
against the U.S. computer company's business practices in the EEC. The
Commission has been investigating IBM's business practices in Europe for the
past seven years.

IBM however declined to speculate whether last night's developments would have
any impact on thw EEC case.

LANGUAGE: ENGLISH

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1133 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Mobil plan to buy U.S. Steel stock delayed

BYLINE: By Our Financial Staff

SECTION: SECTION I; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 128 words

MOBIL CORPORATION'S plans to buy up 25 per cent of U.S. Steel, which won the
battle for Marathon Oil, have been temporarily blocked by the Federal Trade
Commission.

Only hours before the expiry of the deadline for a request for further
information on the proposals, the FTC yesterday sought more data. Mobil said it
was not sure whether it would supply the additional information.

Mobil last month notified the FTC and the Justice Department that it planned to
buy between 15 per cent and 25 per cent of U.S. Steel's 89.8m common shares.
Based on yesterday's share price of $29 such a stake would cost between $390m
and $651m.

If it bought such a holding, it is believed Mobil might try to trade this
against certain of the assets of Marathon.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 9, 1982, Saturday

Swiss Government extends tax options on fiduciary accounts

BYLINE: BY JOHN WICKS IN ZURICH

SECTION: SECTION I; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 207 words

STAMP DUTY has been added to the list of alternatives the Swiss Government is
drawing up under plans to tax the banks' massive fiduciary business.

Two forms of withholding tax have been under discussion for some time. A third
option, a stamp duty of between 0.10 per cent and 0.15 per cent per annum, is
now available to the revenue authorities.

Fiduciary business, which involves funds banks receive from abroad and which are
deposited on the Euromarkets in the bank's name but at the customer's own risk,
have grown rapidly in recent years.

In 1979 they stood at SwFr 75bn, and a year later were close to SwFr 130bn
having overtaken the foreign business done on the banks' own account. By the
third quarter of 1981, fiduciary business totalled SwFr 172.6bn.

The three tax options come up for full discussion by the consultative committee
of the National Council in August.

It remains to be seen whether a tax will finally be imposed on fiduciary
accounts, whose volume is in any case expected to decline this year. The
variant chosen by the Commission in August will still have to be approved by the
National Council itself -- and by the States Council, which last March decided
against taxing fiduciary business.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1135 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Montedison forecasts gradual recovery

BYLINE: By James Buxton in Rome

SECTION: SECTION I; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 333 words

MONTEDISON, the Italian chemical concern which appears to have had a very had
year in 1981, is expecting a gradual improvement in 1982.

Senior executives of the group made this clear at a Press conference held
against the background of unfavourable press and broker comment about the
company's L640bn ($529m) rights issue, which was launched last month.

Subscriptions to the issue, the biggest in Italian history, close on January 18.
The new shares cost L175 each, the nominal value of Montedison shares, but the
stock market price has been in the region of L160 since shortly before the issue
was launched.

This means that despite inducements to shareholders in the form of the right to
buy shares in a profitable Montedison subsidiary and a loan on concessionary
terms to purchasers of up to 50,000 shares, the issue is felt to be
unattractive. However, it is securely underwritten by a consortium of banks and
financial institutions.

Yesterday, Sig Pasquale Cardarelli, the finance director, said that Montedison's
net asset value per share was about L480, and more than L1,000 per share if
unpublished reserves worth L1,000bn were taken into account.

In the first half of 1981 the Montedison parent company incurred a loss of
L296bn and the group L267bn because of the poor state of the chemical market.
Sig Cardarlli implied that the second half of 1981 had hardly been better. Thus
Montedison may be heading for a loss on the scale of its record deficit of 1977
when the parent company deficit was L509bn.

However, he pointed out that the rights issue, which takes Montedison's capital
up to L996bn, would provide additional funds and cut its debt servicing costs,
which in 1980 accounted for 13.5 per cent of turnover. The company would
benefit from the sales of plants and shareholdings over the next two years.
These would bring in between L450bn and L1,000bn. The new funds raised by the
capital increase would not be absorbed by the 1981 losses, he said.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1136 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Harvester to sell Iveco vehicles in North America

BYLINE: BY KENNETH GOODING, MOTOR INDUSTRY CORRESPONDENT, AND DAVID LASCELLES IN
NEW YORK

SECTION: SECTION I; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 426 words

IVECO, the Fiat subsidiary which is Europe's second-largest commercial vehicle
group, has made a significant breakthrough in North America.

It has signed a long-term contract with International Harvester (IH), the
financially troubled U.S. truck and farm machinery maker, for the sale of
Iveco-built light commercials through the U.S. group's dealer network in North
America.

The deal has a great attraction for both companies. IH gave up making light
commercials in 1976 and its dealers will certainly welcome the extra volume the
Iveco trucks will give -- particularly after the very steep drop in commercial
vehicle sales in the U.S. in the past two years.

Iveco has so far been the only European group attempting to tackle the U.S.
market without a local partner. It has a 180-strong dealer network of its own
in North America but the arrangement with IH gives it access to a further 1,300.

The contract runs for six years and has renewal options. It involves the Iveco
Z range of commercials between 5 and 12 tons gross weight which are made at the
plant in Brescia, northern Italy.

Most will be shipped in chassis-cab form to the U.S. where bodies will be added
locally.

Iveco introduced the Z range to the U.S. late last year (1981), using a
Klockner-Humboldt-Deutz air-cooled engine. Following the launch through the IH
dealer in March, an Iveco water-cooled diesel will also be used.

Iveco said it sold about 2,600 vehicles in North America last year -- most of
them medium-heavies bearing the Magirus badge -- and would expect this to jump
to 5,000 in 1982. It estimates it can sell 3,000 through its existing network
and 2,000 through the IH dealers.

IH will put its own badge on the vehicles to go through its network and there
will be other minor modifications.

General Motors and Ford are the main contenders in the segment of the market
into which the Iveco vehicles are slotted.

Meanwhile, Teledyne, the U.S. industrial concern which also holds investment
stakes in large U.S. idustrial groups, plans to increase its holding in
Harvester shares to more than 15 per cent. It has filed its intentions with the
Securities and Exchange Commission, and if it gains anti-trust clearnance,
Teledyne will be free to buy up to 25 per cent of Harvester. It already holds
11.77 per cent of Harvester's common shares, although allowing for conversions
of preferred shares, its stake would be 16.77 per cent.

Harvester said it was pleased Teledyne continued to consider its shares a good
investment.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1137 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Massey reduces loss but sees more rationalisation

BYLINE: BY ROBERT GIBBENS IN MONTREAL

SECTION: SECTION I; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 429 words

RESULTS FOR the final quarter of the year at Massey Ferguson, the troubled
Toronto-based farm and industrial equipment company, show that its recovery
plans have been delayed by the recession in world markets and the high interest
rates in North America.

Further rationalisation of its operations may be needed, the company warned, and
heavy losses will extend into the current first quarter of fiscal 1982 and
possibly into the second quarter.

Overall, the farm equipment industry is not expected to do more than stabilise
itself this summer, which may well mean Massey having to apply for further
support from its bankers and from the Federal and Ontario Governments.

The refinancing package arranged last year with the Federal Government and
Massey bankers has improved the company's balance sheet, arrangements may be
needed.

For the full year ended October 31 last, Massey showed a consolidated net loss
of U.S.$194.8m, against a loss of U.S.$225.2m a year earlier. Sales were
$2.65bn against $3.13bn. The fourth quarter loss was $108.4m against a loss of
$162.3m a year earlier, on sales of $705m, down 17 per cent.

In the current quarter, ending January 31, Massey warns that there will be a net
loss of about $85m.

The year's loss was after a $28.5m exchange gain and $5.1m re-organisation
expenses against a $76.8m exchange loss and $28.5m in reorganisation expenses.

Massey attributed the higher then expected loss in fiscal 1981 to high interest
rates and low commodity prices, which adversely affected world farm and
industrial equipment markets. Hopes for an upsurge from pent-up demand were
dashed by the record interest rates last summer and autumn, while the world
market fell to a six year low.

But Massey maintains that it is still the world's largest tractor producer,
second largest maker of combine harvesters and a leader in diesel engine
manufacture. Last year's re-organisation has put it in a good position when the
market turn comes.

The debt refinancing package negotiated last year saved the company $230m in
cash outlays and $120m in interest was forgiven but recorded as a contributed
surplus. However, interest expenses still remained at $265m against $239m in
the income statement.

Shareholders equity at year end totalled $569m against $353m. Outstanding
shares were 43m against 18.2m as a result of the refinancing.

Inventories at $747m had fallen by $241m on the year. Receivables at $634m,
reflected continuing high dealer stocks. Bank borrowing at year end were $123m
against $1.2bn.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1138 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Bank of Korea abolishes domestic credit controls

BYLINE: BY ANN CHARTERS IN SEOUL

SECTION: SECTION I; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 174 words

THE Bank of Korea (BOK) abolished its domestic credit control policy yesterday
in an apparent liberalisation move. BOK, South Korea's central bank, had
directly controlled the amount of domestic lending by setting limits for each
commercial bank.

Now it will control money supply through, for example, open market mechanisms,
the re-discount rate and reserve requirements. Local bank lending limits will
be determined by the volume of funds which can be attracted as deposits.

This move alone may not improve liquidity for local business much as interest
rates are strictly controlled, making it difficult for banks to attract funds
from limited local markets.

The BOK's ability to implement such a change depends on the development of an
active money market and the liberalisation of interest rates.

Nonetheless, the announcement takes Korea's financial system one step closer to
more market-oriented operation and should result in commercial banks competing
more keenly for deposits while operating more autonomously.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1139 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Collapse of Belgian group causes concern

BYLINE: By Giles Merritt in Brussels

SECTION: SECTION I; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 157 words

THE BANKRUPTCY of a leading Belgian construction company, International
Construction Association (ICA), after the collapse of an important Saudi Arabian
contract, has sent ripples of concern through the country's financial and
banking sector.

As a result of speculation on the size of the ICA consortium's outstanding debt,
Kredietbank the third largest Belgian bank, has said that the losses it had
incurred would have a "minimal" impact on its net profits for the year ending
March 31, 1982, which it expects to be comparable to the BFr 1.76bn ($45.5m)
earned in 1980-81.

The ICA contract with the Saudi Arabian Ministry of Defence is for two military
education centres at Kassim and Dawazir. They were due for completion by the
end of 1981, although it is understood that they are still barely half-built.
The Belgian consortium had taken over the contract from a West German concern
Bautechnik, which had also collapsed.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1140 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Amro in German move

BYLINE: BY CHARLES BATCHELOR IN AMSTERDAM

SECTION: SECTION I; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 115 words

AMSTERDAM - ROTTERDAM Bank (Amro) has acquired a 52 per cent stake in Handels
und Privat Bank (HPB) of Cologne in its first direct move into the West German
market. Amro plans to increase its holding to between 60 per cent and 70 per
cent by the end of the year by taking over the remaining shares held by
Landwirtschafliche Rentenbank of Frankfurt.

A 70 per cent holding HPB would be worth about DM 32m ($14m) based on the August
share price on the West German over-the-counter market when Amro first announced
plans for the acquisition.

HPB has a balance sheet total of DM 1.1bn ($486m) and made net profit in 1980,
the latest year for which figures are available, of DM 1.6m.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1141 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Lead and zinc down despite strike vote

BYLINE: BY OUR COMMODITIES STAFF

SECTION: SECTION I; Companies and Markets; International Companies and Finance;
Commodities/Review of the Week; Pg. 17

LENGTH: 566 words

LEAD AND ZINC prices fell again this week in spite of news that the strike at
Tara Mines of the Irish Republic was continuing.

Hopes that a workers' ballot would result in a return to work at Tara's Navan
mine resulted in price declines for the two metals on Monday, but these were
partly recouped on Tuesday after it became known that the workers had voted to
continue the six-month-old stoppage.

The depressed level of industrial activity, particularly in the U.S., encouraged
renewed falls, however, and by last night's close cash lead was quoted £38.50
down on the week at £325 a tonne and cash zinc £37 down at £425.50. Prices fell
sharply yesterday in response to new price cuts by North American producers. In
addition there were renewed rumours that a settlement at Tara was imminent.

Tara normally supplies around 10 per cent of European smelters' zinc concentrate
requirements but despite the loss of this source poor demand has meant that
concentrate supplies are still more than adequate. Lead smelters said they
expected only minor problems to result directly from a continued Tara closure.

Copper prices continued to drift lower early in the week encouraged by the lower
gold price trend and a rise in London Metal Exchange warehouse stocks last week.
Depressed industrial activity led to further falls and cash copper wirebars
ended £28.25 down at £848.50 a tonne.

The tin price held fairly steady, thanks to continued support buying by the
influential trader who has been dominating the market of late. Cash metal
gained £50 to £8,385 a tonne and maintained a substantial backwardation over the
three months price at £7,965 a tonne.

Meanwhile the Kuala Lumpur Stock Exchange announced it was mounting a proble
into the relationship between the state-run Malaysia Mining Corporation and
Maminco, the company rumoured to be behind the support buying.

Speculative buying in continued response to Ghana's New Year's Eve coup pushed
the May cocoa futures price on the London market up to £1,207 a tonne at one
stage and though prices fell back subsequently the May quotation still ended the
week £34.00 up at £1,191.50 a tonne.

The new regime in Ghana has promised to give high priority to evacuating the
cocoa stranded inland. If it succeeds in this aim it will remove one of the few
"bullish" factors in an oversupplied market.

The market was encouraged meanwhile by further purchases by the International
Cocoa Organisation buffer stock which took the total to over 68,000 tonnes.

Other soft (non-metal) commodity markets moved very narrowly. Coffee traded in
a range of only a few pounds before finishing £12.50 down at £1,31 a tonne in
the March futures position. Sugar prices fell with May futures ending £4.30
down at £171,225 a tonne. Influential sugar statistician F. O. Licht confirmed
this week that he had raised his 1981/82 world sugar output estimate to a record
96.796m tonnes, up from 87.196m in 1980/81. Natural rubber prices ended only
marginally higher despite further support buying by the International Rubber
Organisation (INRO). The spot price on the London physical market ended 0.25p
higher at 49.75p a kilo.

Figures published by London's International Commodities Clearing House this week
show that total trading in 1981 fell to 3.78m lots valued at £38bn, from 4.48m
worth £59bn in 1980.

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Financial Times (London,England)

January 9, 1982, Saturday

Rees warns of danger to Labour peace pact

BYLINE: BY PETER RIDDELL, POLITICAL EDITOR

SECTION: SECTION I; Pg. 18

LENGTH: 331 words

THE FRAGILE truce within the Labour party after this week's talks at Bishops
Stortford, Essex, was tested yesterday.

In a speech in his Leeds constituency, Mr Merlyn Rees, the Shadow Energy
Secretary, warned that the dangers which still existed from extremists to the
party's unity and possible success.

He claimed to be speaking for the heartland of the Labour Party in Northern
England, Wales and Scotland. He pointed out that there were hardly any Labour
MPs in the south and that in London the party's support was dwindling.

"Unless in these areas the party pulls itself together, there cannot be a Labour
government that can carry out the policies we have agreed. Labour has been
talking to itself instead of the electorate."

In contrast, Mr Norman Atkinson, the left-wing Labour MP and former treasurer of
the party, said in a BBC radio interview that the party had to offer something
credible when the election came.

He said: "There is no hope of the Labour Party having full employment so long as
Britain remains a member of the EEC. We do not deserve credibility if we follow
a double-sided coin of that sort."

In particular, he mentioned the party's deputy leader, Mr Denis Healey, who has
said that he will not serve in a future Labour government if it was committed to
unilateral nuclear disarmament or coming out of the EEC.

Mr Atkinson said: "He must put that right if we are to mobilise our maximum
strength."

* The problems between the Social Democrats and the Liberals in Derbyshire
appear to be on the verge of being sorted out. The spokesman for the Derbyshire
Liberals said yesterday that they had achieved a four-four division of seats,
leaving Amber Valley and Erewash still to be sorted out at a meeting on Sunday.

One of the problems for the Alliance is, however, that both these seats are not
due to come into existence until after the recommendations for the Boundary
Commission have been implemented, probably next year.

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Financial Times (London,England)

January 9, 1982, Saturday

Death grant delay protest

SECTION: SECTION I; Pg. 18

LENGTH: 103 words

A LABOUR MP claimed yesterday that the latest delay in announcing a change in
the death grant, which has stood at £30 since 1967, was "prolonging the agony"
for many old people.

Mr George Foulkes, member for South Ayrshire said: "We were given clear and
unequivocal promises in Parliament, and at meetings, that a decision would be
made before Christmas, and this delay is intolerable."

Last month Mr Hugh Rossi, Health and Social Security Minister of State, told MPs
he could not fulfil a promise to make a statement before Christmas, but expected
to do so soon after the Commons resumes on January 18.

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Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Money Markets; Pg. 19

LENGTH: 230 words

HIGHLIGHT: London clearing bank base lending rates 14 1/2 per cent (since
December 4)

Day to day credit was in extremely short supply in the London money market
yesterday. The Bank of England gave an early forecast of a shortage of £350m,
with bills maturing in official hands and a net take up of Treasury bills
draining £130m and Exchequer transactions a further £170m. In addition there was
a rise in the note circulation of £80m. The forecast was revised to a shortage
of £400m before the bank gave assistance in the morning totalling £325m. This
comprised purchases of £7m of eligible bank bills in band 1 (up to 14 days) at
14 3/8 per cent and in band two £77m of eligible bank bills also at 14 3/8 per
cent. The bank also accepted bills in band 3 (34-63 days) for the first time
since mid-December, buying £4m of Treasury bills at 14 3/8 per cent, £10m of
local authority bills at 14 3/8 per cent and £48m of eligible bank bills at 14
3/8 per cent.

In band 4 (64-91 days) it bought £50m of Treasury bills at 14 1/2 per cent, £19m
of local authority bills at 14 1/2 per cent and £110m of eligible bank bills at
14 1/2 per cent.

The forecast was again revised at 2 pm to a shortage of £550m before taking into
account the morning operations. The Bank gave further assistance in the
afternoon totalling £96m, making a grand total of £421m.

The result of yesterday's Treasury bill tender will appear in Monday's paper.

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Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Exchanges and Bullion; Pg. 19

LENGTH: 258 words

Trading was rather quiet in currency markets yesterday ahead of the weekend.
Rates tended to move quite a lot though, but this was more a reflection of the
rather thin trading conditions. The dollar was slightly weaker overall with
Euro-dollar rates showing a small loss compared with Thursday's levels. However
the U.S. unit finished above its worst level as the U.S. Federal authorities
drained reserves from the money market. Against the D-mark it fell to DM 2.2585
from DM 2.2615, having touched a low of DM 2.2520. Similarly against the Swiss
franc it closed at SwFr 1.8265 compared with SwFr 1.8310 and Y221.35 from Y222.0
against the Japanese yen. On Bank of England figures the dollar's trade
weighted index fell to 107.3 from 107.6.

Sterling was slightly firmer overall as shown in its trade weighted index which
rose to 91.8 from 91.7, having stood at 91.6 at noon and 91.8 in the morning.
Against the dollar it opened at $1.9175 and eased a little on some commercial
selling to a low of $1.9130.By mid-day it had recovered slightly to $1.9150 and
gained further ground in the afternoon to touch a high of $1.9260.However as the
dollar improved during the afternoon so sterling fell away to close at
$1.9185-1.9195, a loss of just 10 points from Thursday's close in London.
Sterling fell against the D-mark to DM 4.3350 from DM 4.3450 and SwFr 3.5075
compared with SwFr 3.5275. It was also slightly easier against the Japanese yen
at Y425.

Gold rose $3 1/2 an ounce in the bullion market to close at $400-$401.

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Financial Times (London,England)

January 9, 1982, Saturday

Speculative interest gives equity markets frothy look Gilts more relaxed and
Discount houses rally slightly

SECTION: SECTION I; Companies and Markets; London Stock Exchange; Pg. 20

LENGTH: 460 words

Account Dealing Dates
Option
* First Declarations Last Account
Dealings Dealings Day
Dec 23 Jan 7 Jan 8 Jan 18
Jan 11 Jan 21 Jan 22 Feb 1
Jan 25 Feb 11 Feb 12 Feb 22

* "New time" dealings may take place from 9.30 am two business days earlier.

Drawing hope from the latest developments on the pay front, despite the
railworkers' and miners' disputes, leading shares furthered their recent upturn.
Speculative interest yesterday, the last session of the trading Account,
continued to be the dominant influence and outweighed genuine investment
offtake.

Most of the former business was concentrated on stocks known to be in short
supply and values consequently over-reacted in slender markets. Despite the
absence of a rumoured market raid, Scottish and Newcastle Breweries rose to 56p
before closing only 1 1/2 up on balance at 54 1/2p and, Unigate, another
recently tipped for a similar raid or outright bid, extended this week's rise to
15, at 114p.

Other bid chestnuts came alive including Gipperrods, up 12 at 142p, while Motor
Components shares responded to the expected return to work next week at Ford.
Against the trend, Electrical leaders became unsettled by talk that brokers had
downgraded their profit estimates for Thorn EMI, which is due to report interim
results next Thursday; the possibility of a rights issue was also mentioned.

Discount Houses steadied after Thursday's collapse, although Smith St. Aubyn, at
40p, recovered only a fraction of that day's slump of 97 which followed news
that the group had exhausted its reserves.

Constituents of the FT Industrial Ordinary share index generally displayed
gains, with the notable expection of Thorn EMI in which a fell of 13 was
balanced by a rise of 14 in Glaxo, and this measure of the market closed 1.9p up
at 531.4 to take its gain over the past three trading sessions to 13.3.

Slightly easier money market rates led to a more relaxed air in Gilt-edged after
Thursday's Smith St Aubyn news. Revived small investment demand found stock
occasionally in short supply and quotations responded with the help of a firmer
sterling exchange rate. Closing gains among the mediums ranged to 5/8, while
the short-dated Treasury 9 1/4 per cent 1983 rose 1/2 to 93 7/8. The special
low-coupon Treasury 3 per cent 1987 stock made a quiet debut at around its issue
price of £64 1/2.

Traded options were dominated by ICI which recorded 502 deals -- 488 calls and
14 puts -- out of a total of 1,548. The week's daily average amounted to 1,531.

Construction concern York Mount made a successful debut in the Unlisted
Securities Market; the shares opened at 47p and closed at 49p compared with the
placing price of 46p.

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Financial Times (London,England)

January 9, 1982, Saturday

Smith St Aubyn harder

SECTION: SECTION I; Companies and Markets; London Stock Exchange; Pg. 20

LENGTH: 318 words

Discount Houses regained a little composure after Thursday's collapse which
followed the shock revelation that Smith St Aubyn had lost its reserves because
of heavy losses incurred in the gilt-edged market and proposed a £2.7m rights
issue to replenish its funds. Down 97 the previous day, Smith St Aubyn picked
up 5 to 40p. Cater Allen hardened a similar amount to 280p and King and Shaxson
retrieved a couple of pence to 80p. Gerrard and National, however, softened 2
for a two-day loss of 25 to 243p.

Elsewhere in the banking sector, Guinness Peat stood a few pence down at 90p
before and after the announcement that Mr Alistair Morton has been appointed a
director and chief executive with the authorisation to settle Lord Kissin's
future relationship with the group. With the exception of NatWeat, which
softened 3 to 402p, the major clearers took a firmer line, Midland added 4 to
346p and Lloyds 3 to 428p. Bank of Scotland gained 5 to 518p, after 523p, on
revived bid hopes.

Unsettled recently by fears that the recent stormy weather could cost the
insurance market £50m, Composites rallied slightly. Sun Alliance put on 4 to
824p and Royals appreciated 3 at 330p, while Commercial Union hardened a couple
of pence at 125p.

Scottish and Newcastle were again briskly-traded on rumours of a dawn raid and
touched 56p before settling for a net gain of 1 1/2 at 54 1/2p.

Business in Buildings was slow, but selected issues responded to inquiry and
usually improved. Barratt Developments firmed 5 to 215p, while Costain gained 6
to 242p and the Deferred 4 to 214p. Demand ahead of the annual results, due
January 21, lifted Y. J. Lovell 5 to 250p, while John Finlan put on 4 to 146p on
revived bid hopes. Wiggins Group improved 2 afresh to 88p and Newarthill 8 to
463p, while Breedon and Cloud Hill Lime Works added 3 to 160p, the last-named
following a press mention.

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Financial Times (London,England)

January 9, 1982, Saturday

Polly Peck placing

SECTION: SECTION I; Companies and Markets; London Stock Exchange; Pg. 20

LENGTH: 587 words

Renewed support was forthcoming for ICI which firmed 6 to 306p. Elsewhere in
the Chemical sector, Hickson and Welch put on 8 for a two-day gain of 20 to 220p
in response to the better-than-expected pre-liminary results, while Laporte rose
5 to 127p and Coalite 4 to 127p. Paint shares attracted fresh support on merger
prospects. International Paint, which recently acquired a 12 per cent stake in
Arthur Holden, gained 5 to a peak of 222p, while Blundell Permoglaze gained 4 to
90p and Manders 7 to 158p.

Store majors continued to attract a fair measure of institutional support and
finished with gains extending to double-figures. Gussies A rose 10 for a gain
on the week of 23 to 453p, while Marks and Spencer, 133p, added 3 more. British
Home returned to favour with a rise of 7 to 128p, but Habita, still unsettled by
opposition to the proposed merger with Mothercare, eased 3 to 110p. Secondary
issues were agained featured by Polly Peck which dipped to 355p following the
announcement that the chairman, Mr Asil Nadir, has, through Restro Investments,
placed 1.3m shares through the market at around 350p per share; scattered
support was evident at the lower level and the close was only 10 down on balance
at 365p. Comet Radiovision attracted support awaiting news from the annual
meeting and advanced 5 to 116p, while Currys rose 8 to 174p. Support was also
forthcoming for Martin Ford, 3 1/2 up at 22p, and Harris Queensway, 4 dearer at
132p.

Talk of a brokers downgrading profit forecasts and of a possible rights issue
with next Thursday's interim results unsettled Thorn EMI which closed 13 down at
445p. GEC shed 6 to 800p and Racal eased a couple of pence to 428p, after 425p;
the latter's first-half results are due on Wednesday. Pleassey resisted the
trend with an improvement of a penny to 363p. Secondary Electricals were
featured by a fresh decline in Quest Automation, still on consideration of the
poor interim figures, the close being 10 down to take the fall on the week to 52
at 83p. Amstrad, on the other hand, rebounded to 20 215p following the recent
bout of profit-taking.

Leading Engineers opened a few pence dearer, but lack of support and occasional
offerings saw quotations drift back to close with little alteration on balance.
Loose offerings, however, left John Brown 4 1/2 cheaper at 53 1/2p. Elsewhere,
Chemring responded to demand in a limited market with a rise of 12 to 245p.
Brockhouse hardened 1 1/2 to 32 in response to the chairman's annual review, but
Ley's Foundries, reflecting the annual loss, weakened 2 to 17p. Fresh support
left Chamberlin and Hill 3 higher at 46p and Howard Machinery 2 firmer at 27p.
Babcock rose 3 to 90p and APV 5 to 232p, while GEI International edged up 3 to
70p. On the other hand, Anderson Strathclyde met profit-taking and gave up 2 to
92p along with Benjamin Priest a similar amount down at 35 1/2p.

Selected leading Foods continued to attract speculative interest. Unigate were
again actively traded as dawn raid rumours peristed and closed a penny up for a
gain on the week of 15 at 114p. Ranks Hovis McDougall attracted late support
and added 2 to 62p. William Low added 2 for a two-day gain of 12 to 172p on bid
hopes. Linfood shed 3 to 174p following the announcement that the company had
placed the whole of its holding of 12.2 per cent of the voting shares and 38.3
per cent of the A non-voting shares with Courtaulds Pension Fund; Bishop's
ordinary held at 170p, but the A gave up 4 to 92p.

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Financial Times (London,England)

January 9, 1982, Saturday

Glaxo better

SECTION: SECTION I; Companies and Markets; London Stock Exchange; Pg. 20

LENGTH: 258 words

Glaxo featured firm miscellaneous industrial leaders, rising 14 to 436p on
technical influences. Turnel and Newall put on 5 to 88p in response to an
investment recommendation, while Unilever added 10 to 612p and Beecham 4 to
219p. Elsewhere, a resurgence of speculative buying on bid hopes helped
Gripperrods to advance 12 to 142p, while Neil and Spencer found support and put
on 5 to 35p. Pritchard Services rose 4 to 178p and Sothebys 8 to 383p. Change
Wares continued firmly at 27p, up 2, while Benlox hardened a penny to 26p on the
announcement that the company is acquiring Joshua Bigwood from Maurice James;
the latter ended unaltered at 22p. Hoover A, at 90p, lost 4 of the previous
day's speculative rise of 10 and fading bid hopes clipped 8 from Royal Worcester
to 165p, down 30 on the week.

Pleasurama, a thin market, gained 15 to 320p on further consideration of the
preliminary results.

The general acceptance of Ford's wage offer prompted a firmer tone among Motor
Distributors and component suppliers. Lucas jumped 8 to 224p, while Automotive
Products added 2 to 52p. T. C. Harrison, 78p, and Dorada, 34p, rose 5 and 3
respectively, while Henlys, still awaiting further bid developments, closed 3
higher at 107p, after 109p.

London Shop Property Trust rose 4 to 140p and the 6 1/2 per cent convertible
loan advanced 16 to £178 following the revised conditional bid from Rosehaugh, 5
cheaper at 250p. Elsewhere in the Property sector, Churchbury Estates hardened
5 to 635p following a property disposal.

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Financial Times (London,England)

January 9, 1982, Saturday

Oils quiet

SECTION: SECTION I; Companies and Markets; London Stock Exchange; Pg. 20

LENGTH: 168 words

Oils passed a drap trading session with the leaders drifting a few pence lower
in places. British Petroleum gave up 4 to 298p, while Tricentrol closed 2
cheaper at 226p. Among the more speculative exploration issues, Cambridge
Petroleum reacted 10 to 280p and Edinburgh Securities lost 9 to 207p. Strata,
in contrast, advanced 9 to 52p following news of the spudding of the Woodada
number 5 well in the Cooper Basin.

Still reflecting the absence of bid developments after the flurry of speculative
activity earlier in the week, P & O Deferred eased afresh to 130p before
settling at 132p for a net fall of 2. Elsewhere in Shippings, John I. Jacobs
were noteworthy for a gain of 4 to 38p.

Sogomana continued to feature Plantations, rising 55 for a two-day gain of 85 to
510p following the disclosure that the company is negotiating to sell part of
the Shelford Estate for a consideration of £8.1m. Castlefield (Klang) rumoured
to hold an interest in Sogomana, rose 30 to 430p in sympathy.

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Financial Times (London,England)

January 9, 1982, Saturday

Mines ease

SECTION: SECTION I; Companies and Markets; London Stock Exchange; Pg. 20

LENGTH: 309 words

A gloomy week in mining markets closed with most sectors tending to lose further
ground after the sharp falls in precious and base-metal prices earlier in the
week.

South African Golds moved narrowly either way but generally closed showing
marginal falls despite the $3.5 rise in the bullion price to $400.5 an ounce.
The Gold Mines index eased 1.0 to 298.0, a fall of 9.5 over the week.

In the heavyweights, losses of 1/2 were common to Buffels, £17 1/2, and
Randfontein, £29 3/4, while the cheaper-priced issues showed Grootvlei 13 off at
405p.

The first of the December quarter reports from the South African gold mines,
those in the Gold Fields group, are due next Wednesday.

London Financials staged a good recovery in after-hours' trading. Rio
Tinto-Zinc closed 5 higher at 433p, Charter rose a like amount to 250p and Gold
Fields edged up 3 to 473p. South Africans drifted on lack of interest with the
exception of De Beers, which hardened 2 to 352p; the 1981 diamond sales figure
is expected early next week.

The Rustenburg chairman's profits warning depressed Platinums. Rustenburg gave
up 6 more to 208p -- 20 down on the week -- while Impala dipped 5 to 325p and
Lydenburg 4 to 166p.

In Central Africans, new 1981-1982 lows were registered in Coronation and RCM
which gave up 5 apiece to the common price of 65p. Falcon Mines dropped 10 to
110p.

Australians drifted in idle trading; Ashton Mining eased 4 to 68p and CRA 3 to a
1981-82 low of 153p following the latest quarterly report from the Ashton
diamond venture in Western Australia. Among other leading issues, Western
Mining gave up 5 more to 229p, down 18 on the week.

Elsewhere, Tara Mines dropped 30 to a low of 455p; the zinc/lead mine at Navan
remains on a care and maintenance basis following the rejection of a wage offer
by craftsmen.

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Financial Times (London,England)

January 9, 1982, Saturday

Labour's central broker

BYLINE: BY JOHN LLOYD

SECTION: SECTION I; Man in the News; Pg. 24

LENGTH: 557 words

THE IMPORTANCE of the two-day conference between the unions and the Labour Party
at Bishop's Stortford this week is this: it reasserted the fundamental principle
of the labour movement, that the object of the alliance of organised labour and
political party is the pursuit of power.

All the major union leaders, no matter what their political persuasion, were
convinced that the Party had collectively lost sight of the elementary fact.
This drove them to call -- through their medium, the Trade Unions for Labour
Victory (TULV) -- for the conference, and to impress that view so firmly on the
politicians.

Whether or not the "treaty" of Bishop's Stortford will stand the test of time
and left- and right-wing sniping, to which it is already being subjected -- is
unpredictable.

Mr David Basnett, the 57-year old general secretary of the General and Municipal
Workers Union and chairman of the TULV, was the only figure in the British
labour movement who could have constructed the treaty. There were three reasons
for this.

First, on the retirement, at the end of the last Labour Government, of Mr Jack
Jones and Mr Hugh Scanlon, respectively leaders of the Transport and General
Workers and the Amalgamated Union of Engineering Workers, Mr Basnett -- whose
union is third largest -- inherited the mantle of TUC top dog.

Second, Mr Basnett has deliberately steered clear of allowing himself to be
identified too closely with right or left camps in the TUC. The ambiguity goes
back to his assumption of the GMWU's general secretaryship in 1973 when the
Communist Morning Star promoted him as the most "progressive" candidate, and
most of the rest of Fleet Street hailed the election of a new "moderate." This
refusal to be tied down has exasperated TUC colleagues who wished to co-opt him
to their side, but has allowed him to emerge as the central broker of competing
interests, and spokesman on behalf of the common need for unity.

Third, aided by an innovative and efficient research department and some
impressive national and regional officials, he is able to think through and
promulgate policy for the movement, even though its details have been submerged
in the political and personal feuding which he loathes and has tried to quell.
This policy he sees as a continuation of the lines laid down by the last
Government: a social contract between government and labour, involving business
but concerned to protect and advance the public sector and the low paid.

Like Mr Len Murray, the TUC general secretary, he has a distaste for show,
grandiloquence and the bravura public style which is commonly called charisma.

It was he, in his year of chairmanship, who broke the tradition of
"non-political" chairmanship and insisted on the unions' link with Labour: and
he who, now, has taken the lead in telling the party and the unions that they
must both "act in concert."

Events have conspired to force this self-effacing, somewhat remote man to place
his judgment and leadership on the line in public a test as might be devised: It
is he who will be made to shoulder much of the responsibility if the "treaty" of
Bishop's Stortford proves to be as worthless as the paper on which it could not
be written. He will require all the equanimity he commonly displays to ride out
the coming months.

LANGUAGE: ENGLISH

GRAPHIC: Picture, DAVID BASNETT, "He will require all his equanimity to ride out
the coming months"

Copyright 1982 The Financial Times Limited

1153 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Ford increases share of new car market to 31%

BYLINE: BY KENNETH GOODING, MOTOR INDUSTRY CORRESPONDENT

SECTION: SECTION I; Pg. 24

LENGTH: 422 words

FORD SWEPT the board in the UK new-car market last year.It was the market
leader, the major importer and supplied the three best-selling cars -- the
Cortina, the Escort and the Fiesta.

The group marginally increased its share to nearly 31 per cent of a market which
turned out to be much more buoyant than was expected a year ago.

According to the Society of Motor Manufacturers and Traders, new-car
registrations in 1981 fell by 1.9 per cent, from 1.51m to 1.48m.

Fortunes were mixed for the other UK-based manufacturers. BL began to recover,
pushing its market share up by a full percentage point to 19.2 per cent from the
1980 all-time low. The group also managed a numerical increase in car sales,
something Ford just failed to achieve.

Vauxhall, the General Motors subsidiary, held its share at just above 7 per cent
but suffered a drop in unit sales.

Talbot UK, the Peugeot subsidiary, saw its market share slump from 6 per cent to
4.5 per cent while unit sales dropped by more than a quarter.

Registrations last year, although well below the 1.72m peak in 1979, were the
sixth-best on record.

The importers' share of the market slipped from the record 56.7 per cent in 1980
to 55.7 per cent last year. The major factor was that more Ford cars were
assembled in British plants.

Last year 203,291 of the Fords registered were assembled outside the UK,
representing 13.69 per cent of the total market, compared with 216,760, or 14.31
per cent, in 1980.

The society forecasts that 1982 car sales will be between 1.52m and 1.55m with
imports dropping to about 795,000 from 826,533 last year.

Japanese car sales just squeezed below the 11 per cent of the 1981 market which
would have been the maximum acceptable to the British industry under the terms
of the "voluntary" agreement between the two countries.

The society expects the Japanese market share to remain at about the same level
this year.

The top 10 best-selling cars in 1981 were: 1, Ford Cortina (159,804 sold); 2,
Ford Escort (141,081); 3, Ford Fiesta (110,753); 4, Austin Metro (110,283); 5,
Morris Ital (48,490); 6, Vauxhall Chevette (36,838); 7, Vauxhall Cavalier
(33,631); 8, Datsun Cherry (32,874); 9, Vauxhall Astra (30,854); 10, Austin
Morris Mini (28,772).

* The society also announced yesterday that commercial vehicle sales last year
fell by 19.9 per cent from the 1980 level, to 217,903. Importers took 31.4
compared with 24.1 per cent.Full details of the commercial vehicle figures will
appear on Monday.

LANGUAGE: ENGLISH

GRAPHIC: Graph, no caption

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1154 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Legal action delays golden handshake

BYLINE: By John moore

SECTION: SECTION I; Pg. 24

LENGTH: 410 words

MR JACK GILL, the former managing director of Associated Communications
Corporation, Lord Grade's entertainments conglomerate, will not receive his
compensation package, worth £560,000 in cash and considerable property benefits,
for a few more days or even months.

After taking legal advice, Lord Grade, chairman of Associated Communications,
told shareholders at the extraordinary general meeting yesterday which would
have approved the Gill package that "it would seem prudent" to adjourn the
meeting to next Friday. He said the outcome of the start of legal proceedings
by the Post Office Staff Superannuation Fund, which is seeking to block the
payment in the courts next Monday, needed to be known before the meeting went
ahead.

Lord Grade, aged 75, smoking a large Havana cigar did not depart from a prepared
text throughout the meeting, and would not make further comment after the
proceedings because of the legal implications.

The meeting was held amid speculation that Lord Grade was preparing to stand
down as chairman and sell out his holding to Mr Robert Holmes a Court, the
Australian entrepreneur who holds more than 50 per cent of the non-voting shares
and 3 per cent of the voting shares.

The meeting -- which would have authorised the payment to Mr Gill of £560,000 in
cash and allowed him to purchase a company house with a market value of £275,000
for £165,822 -- lasted barely five minutes.

Mr Ralph Quartano, chief executive of the Post Office Superannuation Fund, said
after the meeting that the court hearing was scheduled for Monday in the
Companies Court before Mr Justice Slade.

The hearing is expected to be adjourned on Monday to give Associated
Communications more time to prepare its evidence. The matter could run into
February and beyond.

Two more investing institutions added their names to the list of eight others
who are already supporting the Post Office in its action. They are funds under
the management of the GLC, and the Pearl insurance group. In all, the
institutions seeking to block the Gill payment account for about 16 per cent of
the non-voting shares.

Mr Gill is "actively considering" suing Associated for breach of contract, Sir
David Napley, his solicitor, warned last night. He maintained that Mr Gill had
entered into a contract with the company so if he left in the faith that they
would pay, and they were unable to pay, they would have broken the contract.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1155 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Why cartels are unpopular

SECTION: SECTION I; The Lex Column; Pg. 24

LENGTH: 323 words

HIGHLIGHT: Index rose 1.9 to 531.4

The Stock Exchange's main argument for increasing commissions is that the
capital base of the broking business has been falling in real terms. Its line
of reasoning is shaky. The number of members has been increasing in recent
years, and a contraction in the list of firms doing business has not brought any
fall in the number of partners. Net margins before interest and partner
emoluments have held remarkably steady for many years. This does not sound like
a business which is making an inadequate return on capital.

It is true that the capital base of member firms has fallen in real terms. The
same has happened to most financial companies. But to say that this is a
sufficient reason for putting up rates is the kind of argument that makes
cartels unpopular. In a more competitive environment, partners would take less
money out of the business, or think twice about the provision of expensive
services -- like research -- which at present are paid for out of un-negotiated
commissions.

Competition can have a dramatic impact on commissions. For instance, to enable
firms to compete more effectively for large business in the American market, the
Council is proposing a 35 per cent cut in the rates on certain large bargains.
Small investors, who will not find it so easy to use foreign brokers, face
increases of up to 84 per cent in these areas.

There is a respectable argument for maintaining a system of minimum commissions,
and one which would probably be supported by most of the big institutions which
on paper would have most to gain from a free-for-all. There is also a good case
for changing the way the charges fail to take account of the much increased
proportion of gilt-edged business.

But it is quite another matter to increase the overall take by the amount that
is now being proposed. In the coming weeks, private and institutional investors
should be pressing for a lot more detail.

LANGUAGE: ENGLISH

GRAPHIC: Graph, no caption

Copyright 1982 The Financial Times Limited

1156 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Guinness Peat

SECTION: SECTION I; The Lex Column; Pg. 24

LENGTH: 240 words

The Guinness Peat affair may be staggering towards some sort of resolution with
the appointment of Mr Alastair Morton as chief executive, Mr Edmund Dell
stepping aside into the post of non-executive chairman. Mr Morton is a decided
catch for Guinness Peat: a less confident man might well have turned this one
down. The crucial point is that his appointment -- proposed by Mr Dell --
appears to have the backing of all but one of the directors, who have so far
hopelessly failed to agree on the rights and wrongs of Mr Dell's quarrel with
Lord Kissin.

Mr Morton has been "authorised to settle Lord Kissin's future relationship with
the group" and he clearly has far more chance than his predecessor of being
considered dispassionate about this subject. The replacement of Mr Dell as
chief executive should remove Lord Kissin's principal grievance, and Mr Morton
was saying polite things yesterday about Lord Kissin's wisdom and experience.
But if the dissension does not die down -- and the renewal of Kissin plans for a
partial bid would amount to a declaration of war -- then the new regime will
have to put up a united front and see him off the premises.

Shareholders in Guinness Peat will be hoping for a quieter life: the employees
are probably going to see some pretty active central management. Meanwhile, Mr
Morton's experience of, and enthusiasm for, energy financing suggests a
promising area for expansion.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1157 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

British Aluminium

SECTION: SECTION I; The Lex Column; Pg. 24

LENGTH: 264 words

Some dramatic numbers are involved in the deal that has extricated British
Aluminium from its problems at the Invergordon smelter. Figures released
yesterday show that it has been able to cash in its future rights to cheap
electricity for the very precise sum of £79.3m. On top of this the Government
has waived loans of £21.2m -- as neat a way as any of depriving newspaper
headline writers of round numbers like £100m. Against this the company has had
to set off £47m -- which includes items such as the cost of repairs to
Hunterston "B" when someone let in sea-water by mistake and the liability for
disposing of uranium waste, probably in the next century.

The actual numbers are pretty arbitrary. It seems fairly evident that a
political decision was reached to let the company off the hook in reasonable
financial shape. So the important figure is the residual £20m of cash with
which the company emerges, of which £4.5m is owed to the local electricity
board, with a similar amount likely to be required to make redundancy payments.
So net debt may emerge at £50m or so, and shareholders' funds somewhere above
£100m depending on the size of the write-down for Invergordon, which has yet to
be finally decided.

British Aluminium will be able to buy primary metal cheaply in the present glut,
but its position will be less comfortable when the cycle turns. Its share of
the UK market may have attractions for a primary producer, and longer term TI --
which holds 58 per cent of the shares, may be thinking hard about its
involvement in aluminium.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1158 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Satellite Television

SECTION: SECTION I; The Lex Column; Pg. 24

LENGTH: 208 words

City institutions are still rolling up to subscribe for nascent venture capital
projects. The latest example is Satellite Television, which expects to be
beaming English language programmes around Europe for the spring. Eight
industrial companies and 18 institutions have put up £4m in loan stocks with the
intention of subscribing a further £6m later. Not bad for a company with fixed
assets of £630.

By comparison with Nimslo or Airship Industries, SATV could move quickly into
profit. It believes that the break-even level of between 1m and 1 1/2m
receivers can be reached in two years or less. To achieve that target, it needs
government licences in several European countries and a replacement for its
existing satellite, which drops out of the sky at the end of 1983. Revenue will
be derived principally from the sale of advertising.

Interest may be paid on the straight loan stock if SATV makes a significant
profit but the covertible, which accounts for the bulk of the initial fund
raising, carries no interest and cannot be exchanged for equity for five years.
Yet this has been little deterrent to cash generating shareholders like Ladbroke
and D.C. Thomson, recently seen as investors in Central Television.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1159 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

U.S. and France agree to curb computer exports to Russians

BYLINE: BY REGINALD DALE, U.S. EDITOR IN WASHINGTON

SECTION: SECTION I; Pg. 24

LENGTH: 539 words

THE U.S. and France have agreed to co-operate in tightening controls over the
export of computers and microelectronics to the Soviet Union, the two countries'
Defence Ministers announced in Washington.

In a joint statement, Mr Caspar Weinberger of the U.S. and M Charles Hernu of
France said an unchecked flow of advanced technology to the Soviet Union would
be a "windfall" for Moscow.

U.S. efforts to curb Western high-technology exports to the Soviet Union and its
allies have been given fresh impetus by the desire to sanction Moscow for its
role in the Polish crisis. But the Reagan Administration has for many months
been urging its Allies to follow such a course as a matter of general principle.

The U.S. will take the lead in calling for stricter controls at a two-day
meeting starting on January 19 of the top-secret Paris-based COCOM organisation,
which vets Western exports to the East on security grounds. The U.S. would like
to see the existing list of prohibited exports strengthened and extended to
include new items.

In Washington, Mr Bobby Inman, Deputy Director of the Central Intelligence
Agency (CIA), said that the Soviet Union had acquired most of the military
technology for its arms build-up since 1964 from the U.S. and its closest
allies.

He told a conference of the American Association for the Advancement of Science
that the technology acquired by Moscow ranged from information on weapons
accuracy to project designs and manufacturing procedures. He implied much of
the information had been acquired by legal means rather than by espionage.

Mr Inman said that in the next few months several U.S. Congressional committees
planned hearings that would reveal specific weapons advantages lost to the
Soviet Union because of the lack of restrictions on exporting scientific
information abroad.

Jonathan Carr in Bonn adds: The U.S. is evidently not expecting its Nato allies
at their meeting in Brussels on Monday to agree to match the kind of economic
sanctions which Washington has taken against Moscow. But COCOM provides a forum
where further pressure for embargo can be applied.

West Germany is thought to be ready, as in the past, to see the COCOM list
updated. But it has pointed out that the U.S. is making very wide-ranging
proposals to bar export of high-technology goods which, if accepted, would be a
major blow to the trade of Bonn and other European countries with the East bloc.
The forthcoming negotiations are therefore expected to be difficult.

Count Otto Lambsdorff, the West German Economics Minister, said in an interview
yesterday that if the U.S. really wanted to hurt the Soviet Union through an
embargo, then it should block grain deliveries. But he noted that Washington
had decided to continue existing grain supplies and merely postponed new
negotiations.

* Mr Wladyslaw Baka, Poland's Minister for Economic Reform, was quoted yesterday
by Warsaw Radio, as saying that U.S. sanctions have already harmed the country's
finances and effected supplies for industry and agriculture.

Poland was finding it increasingly difficult to obtain foreign currencies,
forcing rationing of materials and energy to some sectors of the economy.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1160 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Alert at crippled U.S. reactor

BYLINE: BY PAUL BETTS IN NEW YORK

SECTION: SECTION I; Pg. 24

LENGTH: 337 words

A RADIATION problem was reported yesterday at the controversial Three Mile
Island power station which was crippled two years ago in America's worst nuclear
power plant accident.

General Public Utilities (GPU), which owns the power station -- at Harrisburg,
Pennsylvania -- said an "unusual event" had been declared at the damaged Unit
Two reactor plant.Radiation monitors showed increased activity in the unit's
auxiliary and fuel handling buildings.

An "unusual event" is the official term for the lowest of four emergency
categories.

The plant was evacuated while the problem was investigated. Officials reported
insignificant escapes of radiation and said levels in the building were low and
coming down.

The company said later that conditions were returning to normal and that the
emergency had ended. Full details of the incident would be released.

The incident is bound to have a further impact on public opinion. The Three
Mile Island accident has caused a continuing controversy over the safety of
nuclear power in the U.S.

GPU is currently involved in cleaning up the damaged reactor plant but has so
far failed to raise the necessary $1bn (£520m) to do the job which is regarded
as crucial to the industry's future. Nuclear power generating in the U.S. has
come to a virtual standstill since the accident.

The company has also been lobbying for government permission to reactivate the
undamaged Unit One which was shut down after the accident. However, this was
refused this week until further studies are made.

GPU said later that the radiation was tentatively traced to drains in the
buildings, which had remained contaminated since the 1979 incident.

Workers were clearing water from a pneumatic air line by emptying it into the
drains. This blew contaminated dust particles into the room, where they were
monitored.

A technician who had been affected was now in the clear. The buildings will not
be used until decontamination is completed, the company said.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1161 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

SECTION: SECTION I; Pg. 1

LENGTH: 37 words

£ in New York
- Jan. 8 previous
   Spot $1.9025-9055 $1.9195-9210
 1 month 0.34-0.29 dis 0.34-0.29 dis
 3 months 0.75-0.68 dis 0.78-0.70 dis
12 months 1.00-0.80 dis 1.15-0.95 dis

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1162 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

EEC steelmakers challenge Brussels

BYLINE: BY GILES MERRITT IN BRUSSELS

SECTION: SECTION I; Overseas News; Pg. 2

LENGTH: 213 words

TWO EEC steelmakers -- Kloeckner-Werke of West Germany and Alphasteel, the
British independent -- have filed actions against the Brussels Commission in the
European Court of Justice in Luxembourg.

If their complaints are upheld the operation of the present production and
prices regime in the steel industry by the Commission could be severely
hindered.

All five suits concern the production quotas that have in past months been
imposed on the two steelmakers as part of the Davignon Plan, named after EEC
Industry Commissioner Viscount Etienne Davignon, for nursing the steel industry
back to health by limiting output in order to bolster prices.

One of the three suits by Kloeckner-Werke also challenges the $2m fine imposed
on the West German company last October by the Commission as a penalty for
exceeding its first quarter 1981 production quota by 28,000 tonnes.

This action represents the most serious portential threat to the steel rescue
plan, for in order to obtain an annulment of the fine Kloeckner is asking the
Luxembourg court to declare illegal the decision in 1980 which established the
system of quotas.

The other four suits also risk introducing legal uncertainties which could make
the Davignon Plan inoperable, should they be upheld.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1163 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Discount debacle

SECTION: SECTION I; The Week in the Markets; London Onlooker; Pg. 4

LENGTH: 352 words

The workings of the discount market -- the channel through which the Bank of
England conducts its money market operations -- are mysterious enough at the
best of times. But it is becoming clear even to casual observers that the
system is under strain. Over the last couple of years Clive Discount has had to
be recapitalised after large losses, Gillett Brothers has cut its dividend, and
Cater Ryder and Allen Harvey Ross have agreed a merger which seemed to reflect
the feeling that the business of smaller houses was vulnerable. And now Smith
St Aubyn has called on shareholders to put up £2.7m of new equity after
disastrous losses wiped out both published and secret revenue reserves.

Smith has been a shrewd operator in the gilt-edged market over the last few
years, but in 1981 it got things very wrong. It showed £308m of gilt-edged
stock in its April balance sheet -- more or less the top of the market. Roughly
half of this may have been fixed-coupon stock rather than the variablerate
gilt-edged. On one particular holding -- over £100m of Treasury 15 per cent
1985 -- Smith lost 11 points of capital, and the total losses ran to £15m or
more.

The size of book that a discount house is allowed to run is related to the size
of its capital and reserves, so that the fall in Smith's net worth from £20m
before the crash to £7m or so after the rights issue cuts its business by two
thirds. Many prudent men in the discount market decided long before Thursday's
events that punting in gilt-edged should be done strictly on an overnight basis,
if at all. But the houses are under pressure to have a go from time to time
because they find it difficult to make enough money from their money market
operations to maintain the real value of their equity.

Operating costs are rising all the time, and if the houses cannot hold their own
in real terms they cannot be an effective provider of liquidity to a banking
system with a more or less inflation-linked balance sheet. Smith's share price
fell by 97p to 35p on Thursday, and the Discount House sector dropped by 12.8
per cent.

LANGUAGE: ENGLISH

GRAPHIC: Graph, no caption

Copyright 1982 The Financial Times Limited

1164 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

RTZ lifts terms

SECTION: SECTION I; The Week in the Markets; London Onlooker; Pg. 4

LENGTH: 305 words

Rio-Tinto Zinc has given some concessions and made some ground in its
two-pronged attempt to buy a fifth of the UK cement market, a wide spread of
industrial assets and a useful offset to its Advance Corporation Tax
liabilities.

The first stage, the offer for T W Ward, is proving tough. The stock market had
been indicating all along that RTZ's initial 190p per share terms would need
some improving and the defence underlined the point when Ward said its profits
would rise 27 per cent to £23m in the year to September. The mining giant's
riposte was to lift its terms by 40p per share to £130m. Now Ward's share price
is saying that the revised offer may be good enough. Certainly, RTZ has been
able to go back into the market and hoist its stake in Ward to 26.1 per cent
although Ward remains as prickly as ever.

The second stage follows from the first. RTZ will control Tunnel Holdings if it
gets Ward. The mining group picked up a crucial stake of almost 9 per cent in
Tunnel last summer when Ward itself was gunning for its fellow cement
manufacturer. RTZ's intervention effectively killed Ward's earlier aspirations
but Ward wound up with 42 per cent of Tunnel's voting equity at the end of that
campaign.

Tunnel would much rather be bought by RTZ than Ward. But what price would RTZ,
given control of Ward, pay for the Tunnel minority? It purchased its initial
Tunnel holding at prices up to 450p per share and that is the least it will pay.
Again trusting the stock market's canny nose for the correct price in such
matters, RTZ may come up with quite a lot more since Tunnel "B" shares were
quoted at 530p yesterday afternoon. That suggests that Tunnel shareholders are
already placing what their board described last month as "a proper emphasis on
the very important question of price."

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1165 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Kwik Save rights

SECTION: SECTION I; The Week in the Markets; London Onlooker; Pg. 4

LENGTH: 272 words

Kwik Save Discount has asked its shareholders to stump up £12.28m. It's the
first time it has launched a rights issue since the mid-seventies and even now
the retailer has little pressing need for cash. The balance sheet contains no
debt at a time when its working capital requirements are at their highest
seasonal point. The company says that the proceeds will be used to help finance
expansion, in particular the purchase of freehold sites. Over the last few
years its big capital spending programme has been financed solely from its own
cash flow.

The issue looks opportunistic but there are a couple of good reasons why it
should be launched now.And, after all, it is fairly lightly pitched on a
one-for-ten basis.

Kwik Save wants to step up the rate of physical expansion, possibly by making
acquisitions. The group was talking to Amos Hinton eighteen months ago but
nothing came of that. Now some City pundits believe that Wm. Low is in its
slights. A bid for Low could make sense on a trading basis and Low's shares
crept ahead over the last couple of days capitalising the company at £12m.

Kwik Save is getting a little more ambitious in its plans -- and can also see
cash flow tightening even though profits for the year to next August could be up
from £19.3m to over £23m. The tax burden is unlikely to remain as light as in
the past, when the group benefited from stock relief. Also capital allowances
are not as helpful as for the likes of Sainsbury and Tesco which go in for large
capital-consuming sites. And finally it has probably squeezed as much as
possible out of creditor finance.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1166 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Quest crumbles

SECTION: SECTION I; The Week in the Markets; London Onlooker; Pg. 4

LENGTH: 136 words

Interim pre-tax losses of almost £1.5m from Quest, which claims to be Europe's
largest independent CAD/CAM manufacturer, shook the stock market on Wednesday.
The share price lost a quarter of its value on the day, ending at 100p.

Last year a similar plunge in the price after the interim figures was rapidly
reversed, when the cyclical nature of the business became known. The company
justified that belief with full year profits of £813,000.

But it now expect losses for the year as a whole, and its recession-proof rating
has cracked. On Friday the disillusion continued, with the price falling to 80p
at one point, below its original 1979 stock market placing. However the NEB,
which put £2.9m into the company last July, continues to view Quest as a company
with "very good growth prospects."

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1167 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Technical hitch

SECTION: SECTION I; The Week in the Markets; London Onlooker; Pg. 4

LENGTH: 158 words

Electronic Rentals believes its profits growth has been interrupted due to
technical difficulties beyond its control. Reporting unchanged pre-tax profits
of £7.4m for the six months to September, the group said it had been hampered by
supply problems with Philips in the growing video recorder division.

UK television rental subscriptions dropped slightly in the six months, but
overseas profit contributions advanced by nearly a third which almost offset the
decline in UK activity. Further growth overseas is expected from Rentacolor,
acquired in 1980 for £3m.

At the week's end, shares stood at 83p, only 3p above last year's low, giving a
prospective fully-taxed p/e of less than 20. The balance sheet remains as tight
as a drum -- capital gearing is 100 per cent -- and repayments on the £10m
subordinated loan start in two years. However, income gearing has come down
from 49 per cent to a more manageable 36 per cent.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1168 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

MARKET HIGHLIGHTS OF THE WEEK

SECTION: SECTION I; The Week in the Markets; London Onlooker; Pg. 4

LENGTH: 233 words

Price Change 1981-82 1981-82
y'day on week High Low
F.T. Ind. Ord. Index 531.4 + 1.0 597.3 446.0 Hopeful hints on
pay front
F.T. Gold Mines Index 298.0 - 9.5 429.0 262.6 Fall in bullion
price
Brown and Tawse 142 +13 142 92 Good half-year
figures
Change Wares 27 + 8 96 18 Persistent support
Gillett Bros. 180 -40 290 180 Flat Discount Houses
Hickson and Welch 220 +18 220 137 Better-than-expected
results
Holden (A.) 162 +58 162 86 Int. Paint acquires
12% stake
Hoover "A" 90 +12 163 68 Bid speculation
ICI 306 +14 330 226 Recovery hopes
KCA Int. 120 -14 206 96 Sale of Baron Oil
and Gas
New Sylhet 235 +40 235 140 Bid approach
Palliser Resources 185 +23 345 130 Press comment
Quest Automation 83 -52 175 80 Dismal interim figs.
Royal Worcester 165 -30 293 140 Fading bid hopes
Rustenburg Platinum 208 -20 315 206 Chairman's profits
warning
Smith St. Aubyn 40 -95 204 35 Big losses in
gilt-edged market
Sogomana 510 +85 510 318 Possible asset
disposal
Unigate 114 +15 127 83 Dawn raid speculation
Waddington (J.) 84 -16 156 80 Omitted int.
dividend
Ward (T.W.) 230 +18 230 98 Increased bid from
RTZ

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1169 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Europe's makers scramble to regroup

BYLINE: Jason Crisp

SECTION: SECTION I; Pg. 13

LENGTH: 503 words

EUROPE'S television industry has been going through a period of very painful
re-adjustment as it has tried to come to terms with worldwide over capacity, too
many small and uneconomic units and continuing ferocious competition from Japan.

The British industry stands apart from the rest. Like other European countries,
Britain has seen television factories close and household names withdraw from
the industry. But unlike the others there has simultaneously been a surge in
investment by Japanese companies.

The result is that, with one notable exception, the British television industry
is no longer very British. Five -- soon to be six -- Japanese companies, one
Dutch, one U.S. and a Taiwanese company make the majority of televisions in the
UK.

Sony, the first Japanese company to make televisions in the UK, set up its
Bridgend plant in 1974.It has since been joined by Matsushita (National
Panasonic), Toshiba, Hitachi, Mitsubishi and most recently Sanyo. Meanwhile
Rank and Decca have both withdrawn from the market after huge losses.

But Thorn-EMI survives and is the single largest producer in the country, making
nearly 700,000 sets a year. Two other British companies make colour
televisions, Rediffusion and Fidelity Radio.

Elsewhere in Europe the situation has been changing fast:

* Philips, the Dutch electricals giant and the largest European producer of
colour televisions, has closed three of its nine European television tube
factories, and one set factory (at Lowestoft in England) in the last year.

* Thomson-Brandt, the French group which embarked on an aggressive expansion
through acquisition with the encouragement of the previous government, has had
to reorganise itself. Most of the changes have been in its two acquired German
subsidiaries, Saba (which it bought from General Telephone and Electronics in
1980 and which has the second largest share of the German market after Grundig)
and Nordmende (bought in 1978).

Thomson-Brandt has also recently announced it will close its tube manufacturing
plant in West Germany which is part of its subsidiary Videocolor.
Thomson-Brandt recently took over the shareholdings of AEG-Telefunken and RCA in
Videocolor, the only European tube manufacturer other than Philips.

* Grundig of West Germany has been forced into an alliance with Philips which
now owns about 25 per cent of the German company. Philips' action was prompted
in part by the fact that Grundig is a major buyer of its tubes. AEG-Telefunken
has also had serious problems.

* Philips and Grundig now dominate the Italian market which has seen a number of
companies, including Voxson and Emerson, withdraw from colour television
production.

* ITT, the U.S. company which operated across Europe, has also been
reorganising. It has concentrated all its production of television chassis in
one modernised plant in West Germany where it produces 1m units a year. It has
cut a number of European plants, either by selling or closing them.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1170 of 2315 DOCUMENTS

Financial Times (London,England)

January 9, 1982, Saturday

Take-over bids and deals

SECTION: SECTION I; Summary of the Week's Company News; Pg. 15

LENGTH: 939 words

Rio Tinto-Zinc increased its bid for Thomas W. Ward, but the latter rejected the
new terms, convertible loan stock or a 225p per share cash alternative, as
"still clearly inadequate." The new bid values Ward at approximately £130m
against the £111m of RTZ's first offer.

Property concern Rosehaugh launched a 135p per share cash offer increased
yesterday to about 150p for London Shop Property Trust. The latter is currently
in the process of merging with its sister company, Beaumont Properties. In
December, Rosehaugh bought a 21.4 per cent stake in London Shop from McLeod
Russel.

International Paint, the 88 per cent-owned subsidiary of Courtaulds, paid 150p
per share for 12 per cent of the capital of Arthur Holden, the specialist
manufacturer of surface coatings. IP stated that the investment was in
accordance with its belief that a strong international business could be created
by a closer relationship between the two companies, but Holden directors,
speaking for about 27 per cent of the shares, made it plain that they are
against a merger.

Blue Circle Industries has invited bids for its sand and gravel subsidiary, Blue
Circle Aggregates. Bids are expected to fall in the region of £30m-£40m

Babcock International, the UK engineering group, sold the assets and business of
the Industrial Products Group of its Acco subsidiary to Page-Wilson Corporation
of the U.S. in a deal worth $17.5m.

Tarmac merged its North Sea oil and gas interests with the offshore interests of
Candecca Resources, the oil exploration company with extensive on-shore acreage
in the UK. The deal will lift Tarmac's investment in the North Sea from an
estimated £21m to about £25m. It will give Candecca a 36 per cent stake in
Plascom, Tarmac's North Sea subsidiary.
Value of Price Value
Company bid per Market before of bid
bid for share ** price ** bid £m's ** Bidder
Prices in pence unless otherwise indicated.
Bazaloni Hldgs. 700 * 190 245 1.75 Closerule
Beaumont Props. 155 135 112 24.47 Lndn. Shop Prop.
Berec PP 150 1/2 149 94 85.50 Hanson Trust
Berkeley Hambro 352 330 274 59.82 Town & City Prps.
Callender (G.M.) 85 * 80 56 5.78 Colas Prods.
City Offices 127 124 110 34.04 Greycoat Estates
Croda Int. 70 * § 78 43 1/2 62.8 Burmah Oil
Croda Dfd. 37 * § 51 21 3.90 Burmah Oil
Elliott P'b'ro PP 40 39 42 5.27 Jenks & Cattell
Grant Bros. 190 * 180 179 2.28 Jadepoint
Heron Motor Grp. 28 * § 32 1/2 23 3.56 Heron Corp.
Howden (Alex.) 148 129 142 134.61 Alexander and
Alexander Srvs.
Laganvale Ests. 34 29 29 4.96 Sturla Hldgs.
Lon. Shop. Prop.
 Trust 150 §§ 140 137 14.95 Rosehaugh
Mothercare 170 155 168 +++ 109.61 Habitat
Pyramid (Pbshs.) 60 * 57 1/2 60 +++ 1.20 Starwest Inv.
Ward (T.W.) 225 + 230 144 131.31 RTZ
Williams (W.) 25 * ++ 21 11 +++ 0.85 Price (C.)

* All cash offer.

+ Cash alternative.

++ Partial bid.

§ For capital not already held.

** Based on January 8 1982.

+++ At suspension.

++++ Estimated.

§§ Shares and cash.

PP Unconditional.

# Loan stock alternative.

PRELIMINARY RESULTS
Year Pre-tax profit Earnings * Dividends *
Company to (£000) per share (p)
ABI Holdings June 810  (1,240) 13.5 (31.6) - (-)
Baker's Stores Sept + 752  + (620) 11.6 (15.8) 1.65 (1.32)
Birmnghm. Pallet Oct 102L (81) - (8.9) - (1.5)
Hickson & Welch Sept 6,280  (6,480) 16.0 (17.0) 7.5 (7.5)
Kitchen (R.) Tylr. Sept 442  (638) 29.5 (22.5) 10.0 (10.0)
McCorquodale Sept 5,010  (4,900) 24.5 (26.1) 8.0 (7.89)
Pleasurama Sept 5,580  (4,600) 42.8 (33.8) 9.5 (6.5)

* Dividends shown net except where otherwise stated.

+ Trading profits.

INTERIM STATEMENTS
Half-year Pre-tax Interim dividends *
profit
Company to (£000) per share (p)
Asprey Sept 2,130  (784)  15.0 (15.0)
Black (Peter) Oct 1,800  (1,370)  1.68 (1.54)
Brown & Tawse Sept 1,360  (1,030)  1.4 (1.4)
Cavendish Ests. June 71  (3)L - (-)
Electronic Rntls. Sept 7,390  (7,420)  1.17 (1.17)
Halma Oct 837  (678)  0.56 (0.47)
Hollis & ESA Sept 2,500L (1,370)L - (-)
Howden Group Oct 3,370  (3,050)  1.46 (1.33)
London Inv. Tst. Sept 505  (475)  0.35 (0.35)
Quest Automation Aug 1,460L (347)L - (-)
Waddington (J.) Oct 326  (1,020)L - (2.5)

* Dividends shown net except where otherwise stated.

+ Trading profits.

(Dividends in parentheses are for the corresponding period.)

L Loss.

Scrip Issue

Pleasurama -- One for one.

Offers for sale, placings and introductions

Asset Special Situations Trust -- Is placing 10m ordinary shares with warrants
attached on a one for ten basis at 30p per share.

Fledgeling Investments -- Is coming to the market with a placing of 2.3m
ordinary shares at 58.5p per share.

Malaysiam Tin -- Is being introduced to the Unlisted Securities Market.

Owners Abroad Group -- Is coming to the Unlisted Securities Market by way of a
placing of 6m shares at 10p each.

York Mount Group -- Is coming to the Unlisted Securities Market by way of a
placing of 1m ordinary 10p shares at 46p per share.

Rights Issues

Kwik Save Discount -- Is raising £12.28m by way of a rights issue on the basis
of one for ten at 180p per share.

Smith St Aubyn -- Is raising £2.7 m by way of a one for one rights issue at 25p
per share.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1171 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

End of tropical dream that turned nightmare

BYLINE: BY JOHN ARDEN IN RIO DE JANEIRO

SECTION: SECTION I; Pg. 1

LENGTH: 470 words

THE TROPICAL dream of Mr Daniel Ludwig, the U.S. shipping magnate, is to end
with a takeover by a group of Brazilian companies in association with the
Brazilian Government.

The move will end Mr Ludwig's involvement with the controversial Jari project,
which sprawls across 1.6m hectares (3.95m acres) of Amazon forest land, and into
which Mr Ludwig has invested about $1bn.

The Jari minerals and cellulose project at the fork of the Jari and Amazon
rivers about 250 miles west of Belem is run by a group of companies under the
umbrella of the Ludwig Institute for Cancer Research.

However, Mr Ludwig has already effectively abandoned the project, which is
thought to have lost over $75m in 1980, handing over responsibility to Sr
Augusto Trajano de Azevedo Antunes, a friend and leading Brazilian entrepreneur.

Under the takeover proposals, Mr Ludwig will get nothing initially. The scheme
involves the Brazilian Government and a pool of about 20 companies raising about
$280m which will cover the project's external debts.

The Jari project, possibly the biggest scheme ever undertaken by a private
individual without funding from the capital markets, called for the wholesale
clearance of virgin Amazon forest turning the vast tract of land into a tree and
rice farm on an enormous scale. Fast growing trees were to have been planted
producing thousands of tons of pulp a day, while rice farming and mining
activities would boost revenues.

Although final details are still to be worked out, it is understood that the
pool of Brazilian companies will have to find some $100m. Sr Antunes, who heads
Caemi, the manganese producer, will provide about 40 per cent of the private
capital.

The remaining $180m is money which Brazilian State Development Bank (BNDE)
committed as a loan guarantee to cover the purchase of a cellulose mill and
power plant built by Ishikawajima.

It is believed this debt will be transferred to the state-owned Banco do Brazil,
the country's largest commercial bank, which in exchange will receive preference
shares. This virtually assures the Brazilian Government of a 20 per cent stake
in Jari,

The Government has made no official announcement on its participation but Sr
Antonio Delfim Neto, the Planning Minister, confirmed that as soon as Jari began
to make a profit, the bank's preferential shares would be passed on to private
companies.

Despite Sr Neto's optimisn about the future of Jari, it remains to be seen
whether Mr Ludwig's dream-turned-sour can be made to show a profit.

There are still tremendous legal problems to be worked out regarding land
ownership, under the present plan the pool of companies will take over only an
estimated 900,000 hectares. A special Federal agency is still trying to reach
agreement on the remaining area.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1172 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

U.S. halts turbine parts for gas line

BYLINE: BY KEVIN DONE IN FRANKFURT

SECTION: SECTION I; Pg. 1

LENGTH: 563 words

HIGHLIGHT: General Electric of the U.S., which was to have supplied parts worth
$175m for gas turbines for the Soviet natural gas pipeline from Western Siberia
to Western Europe, said yesterday that the parts could no longer be delivered
because of the sanctions announced last week by President Ronald Reagan.

The sanctions were imposed in response to what the Reagan Administration sees as
Soviet involvement in the army takeover in Poland.

GE said it would not be able to ship the turbine components to its European
manufacturing associates, AEG-Telefunken in West Germany, John Brown in the UK
and Nuovo Pignone in Italy.

The products had been reclassified, said GE. They now needed "validated export
licences" and these would not be granted by the U.S. Department of Commerce's
Export Administration.

The U.S. embargo on these crucial components could seriously hit Moscow's
ambitious timetable for the construction of the 5500km pipeline, which calls for
the first gas to flow before the end of 1984.

The Russians chose GE industrial turbine technology in preference to equipment
offered by European manufacturers, such as Rolls-Royce of the UK. The turbines
have been ordered from three of GE's manufacturing associates in Europe, but GE
itself was to have supplied certain key components.

The GE parts, rotors, stator blades and nozzles, are designed to withstand
extremes of temperature, and were the parts through which the hot gas driving
the turbines would pass.

The parts to have been supplied by GE would have accounted for about a third of
the value of the contracts for the 125 turbines. The turbines are key
components of the 41 compressor stations which must be built at regular
intervals along the pipeline to compress the gas and aid its flow along the
line.

GE said yesterday that it had not yet received official notification from the
U.S. Government about the sanctions classifications, but "unofficially we have
told our manufacturing associates in Europe what the Government's position is."

AEG, which picked up a DM 700m ($311m) contract for 47 of the gas turbines, was
unable to comment yesterday.

The U.S. sanctions could clearly have a serious impact on the construction
schedule of the pipeline. GE said that the French group, Alsthom-Atlantique,
held licences arising from earlier agreements for the manufacture of the "hot
gas pass parts" for the turbines, but so far had not made such components.

GE said it had begun to manufacture the turbine parts at its two factories at
Schenectady in New York State, and at Greenville, North Carolina, but it had now
stopped work after the announcement of the Government's embargo.

The manufacturing associates would be free to get the parts elsewhere under the
terms of their licensing contracts.

* David White adds from Paris: The Soviet Union has ordered 40 rotor "kits" for
gas turbines - similar to those that General Electric was due to supply for
compressor stations on the Siberia gas pipeline - from Alsthom-Atlantique.

Industry officials said the rotor sets, worth some $70m, were expected to be
used as replacement parts after completion of the pipeline, or in a later phase
of Soviet gas export plans. The deal was concluded before the U.S. announced
its sanctions and has yet to be officially confirmed.

First deliveries of the rotor kits from France would not normally be due for
about three years.

* Hazel Duffy adds: Rolls-Royce, the British company which also tendered for the
gas turbines contract on the pipeline, said yesterday that it could supply the
pumping sets but that it would need an export licence from the British
Government.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1173 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Alfa to lay off 40,000 workers

BYLINE: By James Buxton in Rome

SECTION: SECTION I; Pg. 1

LENGTH: 255 words

ALMOST all the 40,000 people employed by Alfa Romeo, the Italian state-owned car
maker, are to be laid off for three weeks from January 18.

The three-week lay-off is seen as marking the first phase of a plan by Alfa
Romeo to lay off the whole workforce for up to a third of the year.

Last November the company indicated plans to lay off about 14,000 workers for
the whole of 1982, and negotiations on future lay-offs are continuing.

An agreement was due to be signed last night by management and unions to put
into effect the first stage of what Alfa Romeo believes is necessary to deal
with what it called a "state of crisis."

The company says that without the lay-offs - which are about 50 per cent
subsidised by the state - losses in 1982 might total L300bn ($250m), about three
times the deficit for 1981.

It has revised its production plans for 1982 downwards by 30 per cent from
260,000 vehicles to 170,000, compared with the 1981 output of about 200,000
units.

Alfa Romeo believes that if nothing is done to halt the losses the whole
medium-term recovery strategy of the company - which is based on new models, a
joint venture with Nissan of Japan and co-operation with Fiat - would be in
jeopardy.

The lay-off of almost the entire workforce will help reduce stocks of unsold
cars at the company's plants near Milan and Naples.

The unions fear that the company wants to use the lay-offs to achieve permanent
reductions in the workforce, as Fiat, the main Italian car maker, did in 1980.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1174 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

German jobless at 28-year high of 1.7m

BYLINE: BY OUR FRANKFURT STAFF

SECTION: SECTION I; Pg. 1

LENGTH: 537 words

THE NUMBER of people unemployed in West Germany jumped to 1.7m in December, the
highest level since 1953.

Some 7.3 per cent of the workforce was without work last month compared with 6.4
per cent in November, and the Federal Labour Office expects the position to
worsen this year.

The average level of unemployment during 1981 was 1.27m but the FLO now expects
an average figure for 1982 of at least 1.6m, and it is not ruling out the
possibility that levels of unemployment might rise to 2m during January and
February.

The lengthening dole queues can only add further weight to the trades unions'
demands for government measures to stimulate the economy and will increase the
pressure on the Bundesbank, the West German central bank, to relax its tight
monetary policy.

Disquiet is also mounting within the Social Democratic Party (SPD), the senior
partner in the ruling coalition in Bonn, over the sharp rise in the number of
people out of work. Herr Eugen Glombig, chairman of the SPD parliamentary
group's social policy working group, yesterday called for state intervention to
stimulate economy, financed by increased public borrowing.

The jobless total jumped by 213,886 in December, and there are now more than 14
unemployed for each job vacancy.

The number of job vacancies shrank further in December by 13,951 to 118,410,
while the number of workers on short-time rose by 69,489 to 505,542.

Not surprisingly, the biggest addition to the unemployment register came from
the construction sector, where 141,020 people were unemployed in December, an
increase of 43,982. The domestic building industry is going through its worst
recession of the post-war period.

However the biggest single group of unemployed are office workers, with 310,900
out of work, followed by the metalworking industry, with 256,644 unemployed.

The Berlin-based German Institute for Economic Research warned that the number
of people in work in 1982 could shrink by 300,000 and even a modest recovery in
the economy in the second half of the year is unlikely to bring any marked
improvement in the unemployment picture.

The number of people out of work has risen alarmingly in the Federal Republic
this year, even though the general level of economic activity has not fallen as
sharply as expected.

The Federal Statistical Office said yesterday that the West German gross
national product had shrunk by 0.3 per cent in 1981, following a rise of 1.8 per
cent in 1980 and a jump of 4.4 per cent in 1979.

Forecasts from the economic institutes and from the Government's Council of
Economic Advisers suggest a marginal growth in the German economy of just
0.5-1.0 per cent in 1982.

According to figures released yesterday by the Federal Economics Ministry,
industrial production in West Germany fell in November on a seasonally adjusted
basis by 1 per cent, chiefly because of falling construction activity.

On a two-monthly comparison, production in October/November was down by 0.5 per
cent on the same period in 1980. The biggest decline has come in consumer goods
manufacture and building where output was 4 per cent lower.

There is little sign of any improvement in the near future.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1175 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Moscow seeks DM 300m in new credits from W. Germany

BYLINE: BY OUR FRANKFURT STAFF

SECTION: SECTION I; Pg. 1

LENGTH: 303 words

THE SOVIET UNION is seeking a further credit of around DM 300m ($133m) from a
consortium of West German banks, led by Deutsche Bank, to fund downpayments for
equipment for the planned Siberia-West Europe gas pipeline, to be bought from
West German companies.

The request was made by Moscow before Christmas. Some of the German
institutions approached, however, are believed to be reluctant to take part in a
new tranche of pipeline credits.

Originally it was agreed that the Russians would make a 15 per cent cash
downpayment for the controversial pipeline, but Moscow is now seeking also to
finance that payment.

The suggested DM 300m credit would run for seven years, but there is still
disagreement between the two sides on the terms for the loan.

The volume of the German banking consortium's credit to the Soviet Union for
equipment for the $15bn pipeline project has been sharply reduced over the last
12 months in line with the modest orders won by West German companies.

A year ago, a jumbo credit of about DM 10bn from West German banks appeared
likely. It is now expected that supplier credits will total little more than DM
2.5bn, with 90 per cent guarantees from the West German Government-backed Hermes
export credit insurance institutions.

It is understood that some DM 1.65bn of this total would for four years be
refinanced through the AKA, the West German banking system's export credit
institution, with up to DM 900m coming in a parallel banking consortium credit.

After four years, the AKA supplier credit would be replaced by a DM 2bn buyer
credit granted by the consortium led by Deutsche Bank. To date, the orders won
by German companies for pipeline equipment have proved so meagre that a
significant portion of the potential supplier credit remains to be used.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1176 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Brussels fines AEG-Telefunken $1m for retail price system

BYLINE: BY GILES MERRITT IN BRUSSELS

SECTION: SECTION I; Pg. 1

LENGTH: 377 words

THE EUROPEAN Commission has imposed a $1m fine on AEG-telefunken, the leading
West German electrical goods producer, for allegedly rigging the retail prices
of such products as television sets.

The heavy penalty for breaching the EEC's competition rules is in line with
others recently announced by the Brussels authorities, and there are a number of
further cases currently under consideration as the observance of competition law
is tightened up at the instigation of Mr Frans Andriesson, the Dutch EEC
Commissioner responsible

AEG-Telefunken was found guilty of raising its retail prices to excessive levels
by operating a special "Five Star" distribution network that had the effect of
excluding retailers who might have opposed its pricing policies.

By the same token, the West German company is claimed to have had a
"considerable influence" on the level of retail prices fixed by its
distributors.

The seriousness of AEG-Telefunken's offence, the European Commission said
yesterday, was aggravated by the fact that in 1973 the company notified the
commission of the potentially sensitive working of its Five Star distribution
system but "had in reality then operated a totally different system."

Details of AEG-Telefunken's supposed excess profits resulting from the retailing
device were not available from the Brussels competition authorities, probably
because the West German company may still choose to contest the matter before
the European Court of Justice

The Commission decision to slap a major fine on the company and other moves
against France's Michelin tyre company, the London subsidiary of the Moet et
Chandon champagne house, and 65 Nordic paper pulp producers reflects growing
political concerns inside the Commission.

The Brussels authorities are particularly concerned that their own calls for an
EEC policy to re-launch the Community's electronics sector, and demands being
made by European electronics goods manufacturers for protection against low-cost
imports, should not be undermined by questionable marketing practices of EEC
producers.

In recent years some Japanese competitors in the electronics consumer goods
sector, such as hi-fi producers, have also fallen foul of the EEC's competition
rules.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1177 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

France plans major rise in research spending

BYLINE: BY TERRY DODSWORTH IN PARIS

SECTION: SECTION I; European News; Pg. 2

LENGTH: 414 words

THE FRENCH cabinet has given the go-ahead to an ambitious expansion of the
country's research effort with the aim of increasing total expenditure to 2.5
per cent of gross national product by 1985.

The programme will demand an annual increase of about 17.5 per cent in real
terms over this period for that part of research controlled by the Research and
Technology Ministry, headed by M Jean-Pierre Chevenement. But a similar effort
will be required from industry, where the state secotr, including those
companies due to be nationalised, has the dominant role in research spending.

Leaders of the French employers' association have already given a guarded
welcome to the Government's plans, but are waiting to see what inducements may
be offered to help them up their own research. Plans to allow tax deductions
against research and development investment are being studied.

A rapid increase in spending has already begun, following the 30 per cent boost
given to the Research Ministry's budget this year.The rise, probably amounting
to about 15 per cent in real terms, means that its spending will go up to about
FFr 25.4bn ($4.46bn) or around half of the country's total research expenditure.

Expansion of the research budget is seen as one of the key elements in the
Socialist Government's plans for the development of French industry. Socialist
planners argue that the country has slipped well behind its main industrial
competitors in this field, devoting only about 1.8 per cent of GNP to research
compared with well over 2 per cent in the U.S., West Germany, Japan and Britain.

As part of the plans to mobilise a wide-ranging national effort in this field, M
Chevenement is organising a large symposium later this month at which he is
hoping to establish a broad agreement among scientists over priority areas for
development.

As a result of this meeting, the Ministry should be able to establish the main
lines of the programme over the next four years, along with the balance between
pure and applied research.

In the past M Chevenement has emphasised France's need to spend more on the pure
aspects of research, but a recent report also stressed that industrial research
in France lags well behind that of its main industrial competitors.

This element of spending amounts to only 1.1 per cent of GNP in France,
according to the report, against 1.6 per cent in the U.S., 1.4 per cent in West
Germany and 1.3 per cent in Britain and Japan.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1178 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Hopes high for end to Gibraltar deadlock

BYLINE: By Robert Graham in Madrid

SECTION: SECTION I; European News; Pg. 2

LENGTH: 569 words

THE SPANISH Prime Minister, Sr Marcelino Oreja, issued a due to meet Mrs
Margaret Thatcher, his British counterpart in London today in a new attempt to
break the deadlock on Gibraltar.

A cautious optimism pervades both Spanish and British diplomats that the meeting
will lead to an announcement on the opening of the frontier, unilaterally closed
by Spain in 1969.

However, the same diplomats point out that both Prime Ministers have only
limited room for manoeuvre and the meetings may end in failure as have all
previous attempts at various levels. This said, Sr Leopoldo Calvo Sotelo is Sr
Calvo Sotelo would not be visiting London if a positive outcome were unlikely.

Today's meeting has been preceded by more than a month of official preparatory
talks, including a hectic last-minute round right through Christmas until early
this week. The aim of these talks was both to create the necessary climate of
confidence and to cover the details associated with any opening of the Frontier.

In April 1980 Lord Carrington, the British Foreign Secretary and his then
Spanish colleague, Sr Marcelino Oreja, issued a joint statement in Lisbon pavng
the way for the opening of the frontier. . .

The statement said that, in return for Spain reopening the frontier, Britain
would undertake to negotiate all aspects of the Rock's future. The frontier was
expected to be open that June. However, the agreement was never implemented,
largely because Spain insisted on a series of reciprocal gestures.

These included concession of equal status in Gibraltar as other EEC nationals
and the right to stay the night in the Rock -- gestures which would enable the
Spanish Government to show that it was not giving away its trump card to secure
eventual sovereignty. It is precisely this aspect which makes the talks so
politically sensitive in Spain and in the UK.

The British Government is committed to maintain its policy of supporting and
sustaining the Gibraltarians and to do nothing without consultation.

The Spanish Government has to take account of fierce national sentiment over the
status of the Rock, and especially the Right-wing which strongly supports the
maintenance of sanctions against Gibraltar until sovereignty is conceded.

Britain is willing to make these reciprocal gestures once the frontier is
opened, and Spain is reportedly equally committed to reopening the frontier.
The speculation is that this will probably be tied to Easter.

The day that the frontier is opened, the British have also agreed to begin wider
negotiations on the colony's future status.

These negotiations will be split into two elements -- those where there are
differences (the question of sovereignty, the status of the airfield built
allegedly illegally, according to the Spaniards, on territory not included in
the original Treaty of Utrecht), and those where there are new areas of
co-operation (Nato, economic ties with the Campo area, etc).

This is the first time that Sr Calvo Sotelo and Mrs Thatcher have met as
Premiers, although the latter came to Madrid in 1978 for the congress of the
ruling Union de Centro Democratico. If the Gibraltar side of the talks goes
smoothly, this will then leave time for broader topics such as Nato, the EEC and
East-West relations. Sr Calvo Sotelo will be arriving from Brussels where he
spent the previous day meeting with EEC officials.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Sr Calvo Sotelo . . . talks with Mrs Thatcher

Copyright 1982 The Financial Times Limited

1179 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Japan moves to freeze Polish aid

BYLINE: BY CHARLES SMITH, FAR EAST EDITOR IN TOKYO

SECTION: SECTION I; European News; Pg. 2

LENGTH: 597 words

HIGHLIGHT: ECONOMIC SANCTIONS AGAINST MOSCOW CONSIDERED

JAPAN YESTERDAY took steps to freeze future financial assistance to Poland, and
said it was considering economic sanctions against the Soviet Union.

At the same time, however, officials confirmed that a series of talks designed
to lay the foundations for ending a three-year interruption in "normal"
bilateral relations with the Soviet Union would go ahead as scheduled.

The decision not to extend further economic co-operation to Poland, except after
a change or improvement in the political situation in Warsaw was explained
yesterday to the Polish Charge d'Affaires by the director-general of the Foreign
Ministry's European Bureau. The ministry added that the majority of existing
commitments to Poland would be honoured.

Japan's "acute concern" about the Polish situation (and its acceptance of the
U.S. thesis that the Soviet Union is to blame) has been communicated on two
successive days to Mr Dmitri Polyanskii, the Soviet Ambassador. On Wednesday,
the ambassador was summoned to an interview with Mr Zenko Suzuki, the Prime
Minister. It was the first meeting of its kind for nearly four years.
Yesterday, essentially the same message was repeated by the Foreign Ministry.

Despite the fact that it has come out explicitly in support of President Ronald
Reagan's interpretation of the Polish crisis (though admittedly after a delay of
several days), Japan does not appear to have considered cancelling plans for a
series of "working level" talks with the Soviet Union later this month. The
talks, are to be held in Moscow on January 20 and 21, between officials, and
will lay the foundations for a visit to Tokyo by Mr Andrei Gromyko, the Soviet
Foreign Minister, later this year.

In "normal" times, Japan and the Soviet Union hold talks at foreign minister
level on an annual basis, with the meeting place alternating between Tokyo and
Moscow. In fact, neither minister has made the trips since 1978, the year
before the Soviet intervention in Afghanistan.

The working level talks are expected to focus on bilateral issues, including the
northern territories issues, involving four Soviet occupied islands north of
Hokkaido which are claimed by Japan. Foreign Ministry officials said yesterday
that they would also cover international issues, including Poland.

A report in a Japanese newspaper that Mr Suzuki had described the bilateral
issues as "more important" to Japan than the crisis in Poland was denied
yesterday by the Ministry. It said the report was based on a conversation
between the Prime Minister and a number of reporters in a passage of a
government building and that Mr Suzuki had been misheard.

The economic co-operation with Poland that Japan still plans to implement
includes a 20,000 tons rice shipment promised before the introduction of martial
law and the rescheduling of some Y22bn (£52m) worth of Japanese loans (agreed in
July 1981). There is considerable doubt whether the Government will allow the
Exports-Import Bank to open a Y6.9bn (£16m) line of credit which was promised to
the Poles in November to finance Japanese steel and machinery exports. A
spokesman for the bank yesterday said the credit line had "not been effectuated"
and now might not be.

Poland is due to make another Y20bn worth of repayments during 1982 of loans
covered by its Japanese Government insurance fund. The present Japanese policy
line of freezing financial assistance would make it difficult to start talks on
rescheduling of these loans but the Japanese are well aware that Poland may not
be able to pay anyway.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1180 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

EEC farm price index shows 11.3 per cent rise for 1981

BYLINE: BY JOHN WYLES, COMMON MARKET CORRESPONDENT, IN BRUSSELS

SECTION: SECTION I; European News; Pg. 2

LENGTH: 359 words

THE EEC's 9m farmers secured the largest increases in product prices last year
since 1976, although in most member states the price rises did not fully match
increased production costs.

According to preliminary estimates from the EEC's statistical office, the EEC's
index of producer prices for farm products rose 11.3 per cent last year over
1980. This compares with a 7 per cent increase the year before and is the
highest rise since a 16.8 per cent increase in 1976.

The rise in the index last year broadly matches the Community's rate of increase
in consumer prices.

It is slightly less, however, than the 12.8 per cent estimated increase in the
cost of goods and services used in agricultural production.

This is one factor used by EEC farmers' organisations to justify their call for
a 16.3 per cent rise in the Community's guaranteed prices to farmers this year.
They also claim that farm income problems have been aggravated by high interest
rates and stagnant, and in some cases, falling production.

The European Commission is due to produce its 1982-83 price proposals in about
two weeks. These are expected to average between 7 and 9 per cent but most
interest will focus on the extent to which the commission seeks to apply its
various proposals for limiting guarantees for products in surplus.

EEC foreign ministers are due to meet next Thursday in a further effort to agree
reform guidelines affecting milk, Mediterranean products and the rate of growth
of farm spending. If they again fail to reach a settlement then the reform
negotiations could well be taken up by the Agriculture Ministers in the context
of the commission's price proposals.

Although the prevailing double digit rate of inflation in the community will put
pressure on farm ministers to award generous price increases, the gap between
producer price increases and the rise in production costs over the last 12
months is substantially less than last year when it amounted to 4-5 percentage
points.

In addition, there has been little or no drop in farmers' real incomes, whereas
in 1979-80 incomes fell by an average of 25 per cent.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 8, 1982, Friday

Solidarity leaders call for passive resistance

BYLINE: BY OUR FOREIGN STAFF

SECTION: SECTION I; European News; Pg. 2

LENGTH: 544 words

LEAFLETS SIGNED by leading Solidarity trade unionists who have escaped arrest
are beginning to appear in Warsaw and elsewhere in Poland, suggesting that the
independent union movement is regrouping underground. It is thought that the
union's central command structure has probably broken down, but that the
movement is surviving in small resistance-style cells.

Lists are circulating of leading Solidarity figures still at large. Mr
Wladyslaw Frasyniuk, a member of the union's 18-member praesidium and head of
the Wroclaw branch, declared in a letter that the union had not fallen apart
under martial law.

'It still exists and acts and its authorities are working because of the will of
the overwhelming majority of the Polish people," he writes. The authorities are
offering a reward of Zolty 250,000 (nearly £2,000) as a reward for his capture.

Another Solidarity leader, Mr Zbigniew Janas, head of the branch at the giant
Ursus tractor factory, has also issued an underground bulletin urging workers to
form secret committees to prepare for a general strike.

Both men warned strongly against active resistance, but called on workers to
co-operate underground in passive opposition to the military authorities.
"Remember that the authorities are murderers," writes Mr Janas. "They are
indifferent to the number of people they shoot if it suits their interests."

Another top Solidarity leader, Mr Zbigniew Bujak, head of the Warsaw branch, is
also at large and has also issued a statement to the union's supporters advising
against violence. Three leaders of the August 1980 shipyard strike at Gdansk --
Mr Bogdan Lis, Ms Alina Pinkowska and Mr Bogdan Borusewicz -- have reportedly
escaped the security net, too.

Solidarity's ninth bulletin since martial law, dated December 30, repeats the
demands of Mr Lech Walesa, the movement's chairman, that if the Government
wishes to negotiate with the union, it must release the entire union presidium
and three of Mr Walesa's closest advisers. It also claim that the imposition of
martial law was decided upon and worked out last spring.

Further indications of the military government's fear of the union regrouping
underground are provided by the decision not to reopen the universities and
technical colleges until further notice. Many university teachers are having to
undergo "verification," the process by which their political credentials are
reviewed, before being allowed to continue to teach. Many journalists are
likewise being quizzed by panels.

Peter Montagnon, Euro-markets Correspondent, adds: A small group of Western
bankers met in London yesterday to review the legal documentation of the
proposed agreement allowing Poland to defer repayment of some $2.4bn of debt
falling due in the final three-quarters of 1981.

The three-hour meeting was called to review the legal contract for the
rescheduling which was distributed in draft form last month to some 500 banks
owed money by Poland.

Reactions of these banks has not so far thrown up any serious legal differences
over the documentation, but bankers who follow Poland now say there is little
more they can do to finalise their side of the agreement until full
communications are restored with Warsaw.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Mr Bujak . . . call to avoid violence

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Financial Times (London,England)

January 8, 1982, Friday

Dutch to cut shipbuilding aid

BYLINE: BY CHARLES BATCHELOR IN AMSTERDAM

SECTION: SECTION I; European News; Pg. 2

LENGTH: 392 words

THE NETHERLANDS is to continue to support its shipbuilding industry, but levels
of aid will be reduced over the next four years. Demand for new ships should
have picked up sufficiently by 1985 for the Dutch yards to stand on their own
feet, the Economics Minister, Mr Jan Terlouw, said yesterday.

The Government plans to pump a further Fl 621m ($250m) into the industry in the
period 1981-85 in the form of subsidies for orders and investment premiums. In
addition, it will also continue to provide interest-rate subsidies but has
rejected a proposal to increase the maximum rate of 2 per cent.

After providing Fl 248m to shipbuilders in 1980, the Government intends to make
80 per cent of this sum available (retrospectively) for 1981, 55 per cent this
year, 30 per cent in 1983 and 20 per cent in 1984. Two large yards, Van der
Giessen-De Noord and the specialised dredger building yard, IHC Holland, will
also receive aid in 1985.

The cabinet is more optimistic about the recovery of shipbuilding demand than
the special commission set up several years ago to co-ordinate the restructuring
of the yards. The commission had recommended the volume of support to be kept
unchanged in 1981 and to fall to 25 per cent over four years. The Government,
however, faces considerable budget pressures.

Within the funding limits now set, aid will continue to be provided on roughly
the same basis as before. Shipyards qualify for an amount of aid equivalent to
10 per cent of their average turnover in 1977-79. The Government provides 1.5
per cent of the value of orders worth Fl 5m, rising to 15 per cent on orders
worth Fl 15m or more.

This system of aid, first introduced in 1980, replaced subsidies for loss-making
orders. The new left-of-centre Government has opted to continue the policies of
its centre-right predecessor aimed at reducing support for "lame duck"
industries and only helping those with a viable future.

The Government is willing in principle to provide 30 per cent of the cost of
investments by the shipyards but wants to know the expected value of these
investments before finally committing itself. Investment aid will only be given
if total aid does not exceed the agreed limit.

Dutch shipbuilding capacity has been nearly halved over the past six years, and
the largest yards have been closed.

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Financial Times (London,England)

January 8, 1982, Friday

Zloty's unofficial value tumbles

BYLINE: BY LESLIE COLITT IN BERLIN

SECTION: SECTION I; European News; Pg. 2

LENGTH: 360 words

THE POLISH zloty has fallen through the floor of the unofficial foreign exchange
market in Western Europe which deals in non-convertible East European
currencies.

Nearly all banks in West Germany are refusing to accept zlotys and only a few
exchange bureaux specialising in East European money will take the Polish
currency at a heavy discount.

Herr Hans Binsch, owner of an exchange bureau in West Berlin, said he is paying
10 pfennigs (2 1/2p) for 100zlotys but that he has not had a customer in weeks.
The official exchange rate inside Poland following last week's 57 per cent
devaluation of the zloty is now 80 zlotys for one dollar. However, not many
Poles are exchanging zlotys for dollars at the official rate.

Before the military takeover in Warsaw, 100 zlotys still fetched 90 pfennigs in
the West Herr Binsch explained. As for buying zlotys, he and most West German
banks are offering 100 zlotys for 60 pfennigs. They are attracting "a few
buyers" among diplomats who are still able to enter Poland and among the 20,000
Poles now living in West Berlin who are sending some money to their relatives in
Poland.

The reason for the large margin, Herr Binsch said, is the conviction that the
zloty will continue to fall. There is also a widespread belief that the
military authorities could issue new banknotes. "This would leave us holding a
lot of scrap paper," he noted.

Herr Binsch and other dealers in East European currencies, whose official
exchange rate is artificially set by their governments, believe the current
series of banknotes would not be invalidated merely to catch the many
speculators, big and small, inside Poland who have sold scarce goods at
exorbitant prices.

"They are quickly exchanging their piles of zlotys into smaller stacks of
dollars because the unofficial (black market) value of the zloty is sinking day
by day. Now, they are safely in dollars."

Instead, he suggested, the Polish Government might want to "knock off a few
zeros from the banknotes for reason of appearance," as poles have lost what
little confidence they had in the zloty, which ironically also means golden in
Polish.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 8, 1982, Friday

E. German attack on Schmidt

BYLINE: By Our Berlin Correspondent

SECTION: SECTION I; European News; Pg. 2

LENGTH: 200 words

EAST GERMANY has attacked Chancellor Helmut Schmidt of West Germany over his
latest reaction to the Polish military takeover, for the first time since the
meeting last month between Herr Schmidt and President Erich Honecker. The sharp
criticism could signal a hardening of the East German line towards Bonn.

The attack, by the East German news agency, came over Herr Schmidt's remarks in
Washington on the military crackdown in Poland. East Germany abstained from any
criticism of Herr Schmidt until he supported President Ronald Reagan's statement
that Moscow was behind the Polish military government.

At the same time the Soviet news agency Tass was mildly critical of Herr
Schmidt, leaving the East Germans to be more explicit.

The East German government news agency, in a dispatch prominently carried in all
newspapers yesterday, said that although Herr Schmidt did not agree "wholly with
the U.S. sanctions, he was interferring -- no matter under whose influence -- in
Poland's internal affairs."

It also accused the Bonn Government of "grossly violating" the Helsinki
declaration by "trying to dictate to the Polish government how it should conduct
its domestic affairs."

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Financial Times (London,England)

January 8, 1982, Friday

Kidnap communique thought a hoax

BYLINE: BY JAMES BUXTON IN ROME

SECTION: SECTION I; European News; Pg. 2

LENGTH: 316 words

ITALIAN POLICE yesterday abandoned their search in the Abruzzi mountains for the
body of the kidnapped American general, James Lee Dozier, convinced that the
telephone call that prompted it was a hoax by the Red Brigades intended to
divert them.

The caller said that General Dozier was dead and gave indications as to where he
might be found.

Investigators were studying the text of part of the terrorist interrogation of
the U.S. general, copies of which were found on Wednesday night in Milan and
Padua. The general, a top staff officer at Nato Southern Europe land forces
headquarters in Verona, was kidnapped three weeks ago.

Extracts from the Red Brigades communique publised in the newspapers showed
nothing to sugest that the general was disclosing any sensitive information or
that he was being unduly helpful to his captors. The interrogation mainly
concentrated on the general's career

In Rome, a senior member of the police special branch was recovering in
hostpital after being shot in the head on Wednesday by a terrorist who came to
the door of his apartment disguised as a postman. The officer managed to fire
at the terrorist, wounding him, before he collapsed. The gunman and a number of
accomplices disappeared.

The officer had directed an operation in the historic centre of Rome on Monday
night in which two Red Brigades members were arrested. Police believe that
they, and up to eight others who escaped, may have been preparing to kidnap one
of a number of important political and business figures who have flats in this
part of rome.

The attack on the police officer, claimed by both the Red Brigades and by a
right-wing terrorist group (he had previously been in charge of investigating
right-wing terrorism) added to the impact of the Red Brigades' current offensive
and helped divert police attention from the operation to find Gen Dozier.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 8, 1982, Friday

Soviet Union cuts Western trade deficit

SECTION: SECTION I; European News; Pg. 2

LENGTH: 160 words

THE Soviet Union improved its trade performance with the West in the third
quarter of 1981, reducing its deficit with major non-Communist countries to
1.46bn roubles ($2.05bn) in the first nine months of the year, according to
official figures published yesterday.

The nine-monthly Foreign Trade Ministry figures showed a clear recovery from the
2.6bn rouble deficit recorded at the six-month mark.

Western experts credited the Soviet improvement to increased gas and oil sales
to the West.

The statistics showed that Soviet exports to the West and Japan were up by 8 per
cent on the same period in 1980, at 12.05bn roubles.

Soviet imports climbed 20 per cent, to 13.52bn roubles.

Western trade specialists expect Moscow to have further closed the trade gap
with the West and Japan in the final quarter of 1981, although generally slower
oil sales to the Communist world made it unlikely that Moscow would move into
surplus as in 1980.

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Financial Times (London,England)

January 8, 1982, Friday

Yugoslavia announces Adriatic oil find

BYLINE: BY ANTHONY ROBINSON IN LONDON

SECTION: SECTION I; European News; Pg. 2

LENGTH: 319 words

YUGOSLAVIA, whose high dependence on Soviet oil and gas imports has been the
basis of a spectacular increase in Yugoslav-Soviet trade over the last two
years, has announced a promising new oil find off the Gulf of Kotor in the
southern Adriatic.

A drilling platform owned by a consortium of Yugoslav and foreign companies,
including the U.S. companies, Buttes Gas and Oil Co and Chevron Overseas
Petroleum Inc, struck oil at a depth of 3,000 metres in seas 300 metres deep
some 30 km off the entrance to the Bay of Kotor.

It is not yet known whether the oilfield is commercial.

Up to now, the bulk of Yugoslavia's 4.5m ton annual domestic oil production has
come from onshore deposits in Croatia and the Pannonian basin. But this is
little more than a quarter of the total oil consumption of around 16m tons. The
Soviet Union supplies between 5m and 6m tons of oil and 3bn cu metres of gas
annually, with the rest coming mainly from Iraq, Iran and Libya.

* Aleksandr Lebl in Belgrade adds: Yugoslav retail prices rose 39 per cent last
year, and government plans to reduce inflation to 15 per cent in 1982 have met
with considerable scepticism. The Government introduced a temporary price
freeze on December 18, but the carry-over effect of this restrained inflation is
expected to push prices at least 20 per cent higher in 1982.

Despite efforts to cut government spending, a 22 per cent increase in the
military budget to 123bn dinars ($3.2bn) has limited the Federal government's
room for manoeuvre.

The main economic priority for 1982 is a cut in the balance of payments deficit
from $1.8bn in 1981 to $500m this year, and this entails a planned 1 per cent
drop in living standards and slower industrial growth. Exports are planned to
rise 8.5 per cent to $10.5bn while imports of plant and equipment from the West
will be halved and consumer goods imports further restricted.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 8, 1982, Friday

Community urged to make stronger protest

BYLINE: BY JOHN WYLES IN BRUSSELS

SECTION: SECTION I; European News; Pg. 2

LENGTH: 453 words

EEC GOVERNMENTS are being urged by Belgium to protest to General Wojciech
Jaruzelski, the Polish leader, about his speech to Community ambassadors in
Warsaw on Monday and to reiterate the West's three demands for easing the
military crackdown.

Mr Leo Tindemans, the Belgian Minister for External Affairs who is now president
of the EEC's Council of Ministers, told journalists in Brussels that his
government was trying to organise a toughly worded EEC response to Gen
Jaruzelski's one and a half hour address to ambassadors.

Mr Tindemans said the general had mostly tried to justify the military
repression and had failed to offer any adequate reassurances about restoring
human rights. He believed that the Ten should emphasise the contents of the EEC
foreign ministers' declaration on Monday, which called for the lifting of
martial law, the release of detainees and the restoration of a dialogue with
both the Solidarity union and the Church.

It was still unclear, said Mr Tindemans, whether General Jaruzelski had hinted
at the possible expulsion of union leaders, but there was no question of the EEC
seeking clarification on this point nor of it offering any encouragement to a
policy of deportation.

"The answer would be as tragic as the question," he said.

Mr Tindemans also suggested that Belgium might be forced to place restrictions
on the Polish embassy in Brussels in retaliation against the severing of
telephone and telex links with the Belgian embassy in Warsaw. Anger at the
restrictions has been increased by the refusal of the Polish authorities to
allow a doctor to visit the Belgian embassy to treat the ambassador's son, who
was taken ill this week.

EEC foreign ministers attending the special Nato ministerial meeting in Brussels
on Monday are expected to resume a discussion on whether Mr Tindemans should go
to Warsaw and Moscow to express Community concerns directly. The idea was
blocked last Monday by France and Greece.

Even if Mr Tindemans received the go-ahead, his trip could be doomed before it
started because he would almost certainly insist on seeing Solidarity and Church
leaders. Access to the former might well be blocked by the Polish authorities.

Paris's position on the proposed visit may prove to be more flexible than
Greece's. The Papandreou government is beginning to cause increasing concern
and irritation because of its reluctance to march in step with the rest of the
Community on both the Polish and Middle East issues

As a result, other governments are beginning to think in terms of pressing ahead
on the basis of consensus among the Nine while leaving Greece free to dissociate
itself from EEC foreign policy decisions.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 8, 1982, Friday

Greek forces change

SECTION: SECTION I; European News; Pg. 2

LENGTH: 40 words

Greece's Supreme Council of National Defence has completed sweeping changes in
the armed forces leadership by retiring six more Lt-Generals, 10 Major-Generals,
two Rear Admirals and two Air Vice-Marshals, writes Victor Walker in Athens.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

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Financial Times (London,England)

January 8, 1982, Friday

Angola accuses S. Africa of attack

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 160 words

DATELINE: LISBON

Angola accused South Africa yesterday of attacking Cuban troops deep inside the
country, and of escalating the conflict with long-range air raids.

The official Angolan news agency Angop quoted the Defence Ministry as saying a
Cuban soldier had been killed, three wounded and one captured when South African
forces attacked Cuban and Angolan units 190 miles north of the Namibia border
last weekend.

It said three Angolan soldiers had also been killed in the raid, involving
aircraft and helicopters, in an area between Uia and Mujombe. The Ministry said
a South African statement on Tuesday that the Cubans had been shot near the
Namibian border was false.

According to South Africa the clash occurred in what Pretoria describes as an
operational area along the border. This refers to a stretch of territory
between Namibia and the Cunene River, which Luanda says has been under South
African control since a major incursion last August.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 8, 1982, Friday

Peking tackles unemployment problem

BYLINE: BY COLINA MacDOUGALL IN LONDON

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 679 words

HIGHLIGHT: KEY ROLE FOR PRIVATE COLLECTIVES

PEKING is no longer sweeping its unemployment problem under the carpet. This
sensitive issue has now become such an important factor in China's long-term
stability that the central committee and state council recently issued a
decision on unemployment, confirming the importance of the privately run
collective and proposing other solutions.

The question has now been thrown open to debate. The People's Daily declared
recently that young people ought to find their own jobs in collectives instead
of waiting for the state to find one for them.

China's population growth alone is a major factor in creating unemployment.
Present estimates put it at about 1.2 per cent annually - which means another
200m by the year 2000. However, many Westerners regard this estimate as
optimistcally low - particularly for the countryside, where children are
regarded as insurance.

The new "responsibility system" in the communes which allows households to work
for themselves also encourages large families. Peking's policy of encouraging
single-child families, to curb the birth rate among the rising number of newly
married couples (the result of abandoning family planning 20 years ago), seems
unlikely to work on the farms.

China already has to find jobs for about 7m school leavers a year. By
exploiting the collective sector - as opposed to state-run enterprises - Peking
claims to have placed 20m people in jobs over the past three years, but this
includes a large backlog from the Cultural Revolution. There is still a vast
pool of people awaiting jobs.

Furthermore, the People's Daily pointed out, China will have to find jobs for
workers made redundant when industrial productivity inevitably increases as
China modernises.

There will be surplus hands on the communes to be absorbed in industry as the
rising population puts more pressure on land. At present, Peking forbids rural
migration to the towns, but that ruling cannot last forever.

Peking has caught on to the idea that jobs in the new collective sector could be
a lifeline. Last year, they provided 43 per cent of all new employment. Jobs
were lost in the Cultural Revolution because small businesses were seen as
"sprouts of capitalism" and so closed down.

The new spending power created by the economic reforms of Deng Xiaoping,
Vice-chairman of the Cninese Communist Party, has produced a pressing demand for
consumer goods and services like restaurants.

Peking has recognised the advantages of answering this demand but there are
still hardened attitudes to change within the bureaucracy.

The new policy had to spell out that workers in collectives were socialist
workers like everyone else and should be allowed to join the party. The
collectives should be protected by law from interference or extra tax applied by
local bureaucrats.

Peking has conceded that the employment picture would improve if the "iron rice
bowl" - job security, come what may - could be abolished.

Workers in state enterprises can draw their pay and are almost never dismissed,
even if they never do a decent day's work.

In a Guizhou coal mine recently, 416 men failed to turn up for work for more
than three months. Such absenteeism is common, recent press reports indicate.

More money must be spent on education, argued the People's Daily. This would
improve the quality of people coming on to the job market. In the long run, it
would make industry more efficient, boost the economy and so provide more jobs.

But the attitudes in the bureaucracy are still uncomprehending. Graduates are
simply assigned to jobs - often unsuitable ones - without choice. Shaanxi
Province recently issued a circular on this process, which declared that even
the departments taking on graduates should not interview them unless they had
special permission.

China has tens of thousands of people, if not more, wasting their talents in the
wrong job. Until Peking learns to use them properly, the chances of boosting
the economy enough to generate jobs it needs do not look good.

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Financial Times (London,England)

January 8, 1982, Friday

Supply of Nigerian oil may decide fate of Ghana coup

BYLINE: BY QUENTIN PEEL IN LONDON

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 498 words

THE FUTURE of the New Year's Eve military coup in Ghana could be decided by the
attitude of the Nigerian Government, which provides Ghana with virtually all its
oil supplies.

Senior members of the deposed civilian administration in Accra, who have fled
the country since the coup, say that Ghana already owes Nigeria some $90m, for
supplies of oil.

There are now only a few weeks' of reserve supplies in the country, in spite of
strict rationing already in force.

The refugees say the Nigerian Government agreed to extend its credit terms at a
meeting with Dr Hilla Limann, the former Ghanaian president, just before
Christmas.

However, the Government has yet to state publicly its attitude to the new coup
leaders, under Flight Lt Jerry Rawlings.

When Flight Lt Rawlings seized power in June 1979 and executed three former
heads of state, the then military government of Nigeria cut off oil supplies.

Apart from a very modest level of production from Ghana itself, the country
receives all its supplies on generous credit terms from Lagos.

An alternative supplier would be Libya, which has already recognised the
Provisional National Defence Council in Accra, and is accused by Flight Lt
Rawlings' opponents of having actively backed the coup.

Communications within Ghana are already hamstrung by lack of petrol, poor road
conditions, and lack of spare parts for vehicles.

There are no internal air flights, and even the presidential aircraft - a Fokker
F28 - is understood to be in Holland for a service.

Accra airport and the country's borders remain closed more than a week after the
coup, although Flight Lt Rawlings has said that the port is open - apparently in
the hope that oil shipments will continue.

Earlier, Flight Lt Rawlings, said that "people's tribunal" would be set up to
try anyone who had "committed crimes against the people."

The decision was broadcast by the state radio, shortly before it was announced
that Mr Joseph de Graft Johnson, Vice-President in the deposed civilian
administration of Dr Hilla Limann and the most senior member still at large, had
been arrested.

More than 60 leading officials of the civilian government are now being held.

The broadcast by Radio Accra quoted Flight Lt Rawlings as saying that the
people's tribunals would be established in addition to the normal courts of law.
They would hear evidence in public but would "not be fettered . . . by the
technical rules which in the past perverted the course of justice and enable
criminals to go free."

The Provisional National Defence Council (PNDC) now in control of the capital is
issuing an increasing number of decrees - although observers in Accra reports
that it appears to be working out its strategy as it goes along rather than
according to any pre-determined plan.

Flight Lt Rawlings remains the only known member of the council and some
observers believe that several factions are still competing for his attention.

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Financial Times (London,England)

January 8, 1982, Friday

Mubarak disappoints with his reshuffle

BYLINE: BY ANTHONY McDERMOTT IN CAIRO

SECTION: SECTION I; Overseas News; Egypt's New Cabinet; Pg. 3

LENGTH: 746 words

"Shidde heilak" -- with these words, which mean a cross between "good luck" and
"try your hardest," President Hosni Mubarak entrusted the ministerial job of
running Egypt's economy to Mr Abdel-Fattah Ibrahim in his first cabinet
reshuffle.

It is a powerful irony that this greeting has been made a person on his sickbed,
and it is sadly appropriate in this case.

This is because many people -- both Egyptian and foreign -- have been
disappointed by this partial reshuffle, particularly when it comes to the new
economic team. For, Mr Mubarak, since he succeeded Mr Anwar Sadat after his
assassination on October 6, has resolutely said that after internal security,
reform of the economy to eliminate waste and exploitation was to be his
priority.

A partial reshuffle had been promised for some time, with a view to
strengthening the economic sector. But the nature of the appointments have
brought most observers to hope that deliberately or not the cabinet changes are
a temporary feature, and that the real changes are yet to come, probably after
the projected withdrawal from Sinai by Israel

The timing of the reshuffle, in which the key positions of defence and foreign
affairs were unchanged, came as something of a surprise and seems to have been
precipitated by three factors. The first was a general need for change in
presidential style after Sadat's haughty paternalism

The second was probably Mr Mubarek's desire to establish a government more of
his own before the national economic conference planned for the second half of
his month, before his first trip abroad in February to the U.S., West Germany,
France and Britain, and before Israel's withdrawal.

But the third and most compelling reason, which could well account for the
weakness of the appointments, was that Mr Mubarak has promoted himself as being
strongly against corruption. Dr Abdel-Razzak Abdel-Meguid, the Deputy Prime
Minister with overall responsibility for the economy (Mr Ibrahim's predecessor),
had been named -- in probably unfair circumstances -- along with another
minister in a corruption case.

What seems to have happened is that Mr Mubarak hastily asked Dr Fuad Mohieddin,
his first Deputy Prime Minister and Now full Premier, to select a new cabinet
with emphasis on changing the holders of economic portfolios. This he did,
choosing largely men with whom he has had a working relationship over the nine
years in which he has been a minister.

Mr Ibrahim, now 60, has been governor of the Central Bank of Egypt since 1976,
having retired because of ill health after saints as minister of finance and
social insurance in the mid 70s. According to most observers, he is able but
physically not up to the demands of his job and lacks the dominating presence
which, whatever his faults, Dr Abdel-Meguid had in abundance.

Mr Mubarak has inherited a difficult economic situation. The inflow of funds
from four big earners is growing substantially less fast than in recent years
while the population and imports continue to grow at an alarming rate. The more
liberal "open door" policy has increased corruption and helped to intensify
social strains between the very rich and others. Perhaps Dr Abdel-Meguid's key
mistake during his 19 months in office was not to use the balance of payments
surplus -- in the face of advice from the World Bank and IMF -- to attempt to
alter the basic structure of the economy so that it might become more
self-sustaining.

Subsidies constitute one main area which is to receive attention. Mr Mubarak
was apparently appalled to learn that they are now running at about E£2bn
(£1.2bn) a year.

Dr Abdel-Meguid propably also failed because he lacked patience in his justified
attempts to control the foreign exchange markets and to curb imports. As a
result he moved too fast and haphazardly, causing uncertainty and confusion. He
also seriously underestimated the fact that oil prices would fall from their
1980 peak on which he based his assumptions. It is an irony that Mr Ibrahim
should be his successor, for they were often at loggerheads, with the Central
Bank complaining they had been left out of important decisions. Mr Ibrahim is
temperamentally a completely different character, quiet, personable and
diligent. Given the nature of his task, doubts remain whether in the long term
he and his largely unknown colleagues are equal to the task central to the
success of Mr Mubarak's government.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Mr Mohamed Ibrahim

Copyright 1982 The Financial Times Limited

1194 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Martial law decree in Bahrain

BYLINE: By Mary Frings in Bahrain

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 73 words

THE Bahrain Government has published a decree empowering it to declare martial
law if it sees any external or internal threat to the country or its leaders.
The decree follows the discovery last month of an Iranian-backed plot to
overthrow the regime.

Bahrain's Interior Minister, Sheikh Mohammed bin Khalifa al Khalifa, said
earlier this week that 60 men now under arrest would be charged under Section
122 of the penal code.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1195 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Settlers in Sinai to get higher compensation

BYLINE: BY DAVID LENNON IN TEL AVIV

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 169 words

THE ISRAELI cabinet yesterday approved a payment of £137m to the Jewish settlers
being evacuated from Sinai, but a number of Ministers protested that this was
far too high a price to pay the evacuees.

The settlers, who must leave their homes, farms and businesses in the northern
Sinai before the April 25 withdrawal date under the peace agreement with Egypt,
had threatened not to leave their settlements unless the Government increased
its original compensation offer.

Last month they burnt Government offices and hung an effigy of Mr Menahem Begin,
the Prime Minister, in protest. Yesterday the settlers said they were delighted
with the Government's decision which means they will receive some 20 per cent
more than had been offered earlier.

Mr Yoram Aridor, the Finance Minister, opposed the increases at a time when
Government budgets were being cut. Mr David Levy, a Deputy Premier and Minister
of Housing, said it was immoral to give in to the "bully boy tactics" of the
settlers.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1196 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Malaysia cuts oil price by $1 a barrel

BYLINE: By Ray Dafter, Energy Editor, in London

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 158 words

Malaysia has cut the price of its crude oil by up to $1 a barrel following
pressure from international oil companies.

Industry reports said that Petronas, the state oil corporation, had cut the
price of its most popular Tapis blend light crude oil by 30 cents a barrel. The
cost of the lower grade Bintulu crude is being cut by $1 to $35.10 a barrel.

The move by Malaysia - which is not a member of the Organisation of Petroleum
Exporting Countries - follows similar price-cutting measures by other important
producers. Mexico, for instance, has just cut the average price of its output
by $1 a barrel.

Malaysia currently produces about 260,000 barrels a day. Its experts, of about
200,000 b/d, go mainly to the U.S. and Japan. The new price adjustment, made
retroactive to January 1, puts the market value of crude produced from
Malaysia's offshore fields in the South China Sea, in a range of $35.10 to
$37.60 a barrel.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1197 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Sudanese student dies

BYLINE: By Rick Wells in Khartoum

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 62 words

STUDENTS from Khartoum University staged a silent protest yesterday following
the death of a student shot by riot police during Wednesday's demonstrations.
Police surrounded the university yesterday and guards were placed at the
hospital where the student died.

The university senate was to meet last night to decide whether the university is
to be shut down.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1198 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Car workers expected to clear way for pay talks

BYLINE: BY PAUL BETTS IN NEW YORK

SECTION: SECTION I; American News; Pg. 4

LENGTH: 373 words

UNION representatives at General Motors and Ford are expected today to clear the
way for preliminary discussions on a new three-year wage contract with the two
companies. Some 500 Ford and GM delegates are expected to vote in favour of
giving union negotiators the go-ahead to start talks on the new contract.

Although the three-year labour contract of the United Auto Workers Union at GM
and Ford does not expire until September 14, the car union and the companies
seem anxious to reach a settlement as soon as possible.

The delegates vote appears a foregone conclusion, as pressure has been building
up on the union to reach as equitable a settlement as possible in the face of
the continuing slump in the U.S. car industry and the threat of further extended
lay-offs

For the car companies, 1981 was another disastrous year, with sales at
rock-bottom levels. The car companies now hope 1982 will see a recovery in car
sales. But this turn-round is not expected to occur in the next few months, in
view of the country's continuing recession and the uncertain outlook on the
interest rate front.

The car-makers are asking the unions to agree to numerout concessions to hold
down labour costs.

Car workers at Ford and GM have so far said they were not ready to make
concessions, but the fact they are ready to open negotiations so soon suggests
they may well compromise.

Oil companies are meanwhile negotiating a new labour contract with the Oil,
Chemical and Atomic Workers' Union.

These negotiations affect some 400 contracts which run out at the end of this
month and involve 55,000 refinery workers.

The oil companies have offered 7 per cent wage increases this year and 5 per
cent in 1983. But the unions rejected this initial offer and are now
considering a new offer made by Gulf Oil.

Gulf's latest offer involves an increase of 8 per cent in wages in the first
year and 6 per cent in the second, in a two-year contract. This is the best
offer so far made by any oil company to the union.

But Gulf's offer did not include labour demands for a "no lay-off" policy to
protect workers from the threat of redundancy. The union indicated yesterday
that it will probably reject Gulf's offer.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1199 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Levesque's chief strategist resigns

BYLINE: By Robert Gibbens in Montreal

SECTION: SECTION I; American News; Pg. 4

LENGTH: 310 words

THE chief strategist of the Parti quebecois, Mr Clause Morin, has resigned as
Minister of Intergovernmental Affairs in Quebec. Mr Morin had mapped out the
party's step-by-step route towards sovereignty and, ultimately, independence,
which was rejected by militants at a party conference in December.

Mr Morin's job will be taken over temporarily by Mr Rene Levesque, Premier of
the French-speaking province, who is fighting to re-establish his authority in
the party.

Mr Levesque has called a ballot among party members in which he wants them to
back two principles.

These are that sovereignty must be coupled with a form of economic association
with the rest of Canada; and that Quebec should not go ahead without the backing
of a majority of its electorate

That majority does not at present exist. The objective of
"sovereignty-association" developed by Mr Morin and Mr Levesque in the late
1960s was rejected by the electorate in a referendum in May 1980.

Mr Morin suffered another setback last year when he failed to hold together a
majority of the Canadian provinces opposing the constitutional reform plans
sponsored by Mr Pierre Trudeau, the Canadian federal Prime Minister.

Mr Trudeau outmanoeuvred Quebec which was left in lone opposition, claiming that
Mr Trudeau was violating provincial rights. The constitutional plan has gone
forward for endorsement by Westminster.

The debacle encouraged Parti quebecois militants to resume their all-out push
for independence to be proclaimed if the party won the next elections, even if
it did so (as in both 1976 and 1981) with a minority of the popular vote.

The results of Mr Levesque's ballot are expected before the end of this month.
He is expected to win, but has admitted he does not foresee many more than
100,000 of the party's 300,000 members bothering to vote.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1200 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

French supply arms to Sandinistas

BYLINE: BY DAVID HOUSEGO IN PARIS

SECTION: SECTION I; American News; Pg. 4

LENGTH: 396 words

THE FRENCH Government has risked a further clash with the U.S. over its support
for left-wing regimes in Central America by agreeing to supply arms to the
Sandinista Government in Nicaragua.

Details of the agreement were published in this week's edition of the weekly
magazine L'Express. The French External Affairs Ministry yesterday confimed
that an arms sale had been made to Nicaragua last month. It declined to
elaborate on the type of weapons beyond saying that they were of a "light" and
"non-offensive" nature.

U.S. anger at the deal is likely to be exacerbated by the failure of the U.S.
Administration to obtain direct French confirmation until now of recent reports
circulating in Latin America of the French arms sale.

According to the magazine report, France has agreed to provide two patrol boats,
two Alouette-3 helicopters, lorries and limited naval and air training. The
deal is said to be worth over FFr 100m (£10m).

In September the U.S. reacted with indignation to a joint French-Mexican
decision to recognise the two left-wing guerrilla organisations fighting the
U.S.-backed Government in San Salvador.

The joint initiative was afterwards condemned by nine right-wing administrations
in South America.

In an attempt to dispel fears that the arms will be passed to guerrillas in San
Salvador, the French External Affairs Ministry exphasised yesterday that the
contract included a clause forbidding pre-export.

The issue is, however, certain to be taken up with M. Charles Hermu, French
Minister of Defence, who is at present on a visit to the U.S.

The External Affairs Ministry yesterday put the arms sales in the context of
France's growing ties with Nicaragua. M Claude Cheyason, the Foreign Minister,
visited the country in August. France has also agreed to provide food aid and
financing for several industrial projects.

The Ministry emphasised that French policy was not to let Third World countries
become exclusively dependent on the Eastern bloc for arms supplies.

The U.S. view is that Nicaragua is already heavily armed and that the French
sale will exacerbate tensions in Central America.

More broadly, the arms deal fits into President Mitterrand's belief that
tensions in Central America reflect economic and social inequalities and that
left-wing regimes need support to keep Communism at bay.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1201 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

CIA director back in spotlight

BYLINE: BY REGINALD DALE, U.S. EDITOR IN WASHINGTON

SECTION: SECTION I; American News; Pg. 4

LENGTH: 338 words

MR WILLIAM CASEY, President Ronald Reagan's controversial Director of the
Central Intelligence Agency (CIA), was yesterday once again back in the
spotlight of unwelcome Washington publicity.

In a front-page story, the Washington Post said it had Government documents
strongly suggesting that he should have registered as a foreign agent when
representing the Indonesian Government as a private lawyer in 1976.

Mr Casey contended in past Senate inquiries into his affairs that he only
performed limited legal services for Indonesia and attended "informational
meetings" with officials of the Internal Revenue Service -- activities that
would not require him to register as a foreign agent.

The Post, however, maintains that documents show that Mr Casey actively lobbied
top officials at the Treasury Department, including Mr William Simon, the then
Treasury Secretary, for multi-million-dollar changes in U.S. tax law -- an
activity that would normally require him to register.

The issue of whether or not Mr Casey should have registered is currently under
review by the Justice Department.

The Senate intelligence committee said yesterday that the Post article contained
nothing that was new to the committee or its staff.

Last month, after a lengthy inquiry, the Committee somewhat grudgingly concluded
that Mr Casey was "not unfit" to serve as CIA director, criticising him for
"inattention to detail" in disclosing his past business dealings.

The finding was accompanied by calls for his resignation similar to those that
greeted last July's allegations about the business record of the man he had
appointed to head undercover operations, Mr Max Hugel, Mr Hugel resigned, Mr
Casey narrowly survived.

Mr. Hugel maintained his innocence, but Mr Casey's critics, and there are many
of them in Washington, argued that he had shown bad judgment in appointing Mr
Hugel -- particularly in his capacity as a former chairman of the Securities and
Exchange Commission, the watchdog of Wall Street.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1202 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Baldrige blames management

BYLINE: BY DAVID LASCELLES IN NEW YORK

SECTION: SECTION I; American News; Pg. 4

LENGTH: 207 words

Mr Malcolm Baldrige, the U.S. Commerce Secretary, yesterday put some of the
blame for the declining productivity record of the U.S. on the poor management,
although he said unrealistic wage settlements, particularly in the car industry,
had also played a part.

Mr Baldrige's remarks were made to the first meeting of the new National
Productivity Advisoty Committee set up by President Ronald Reagan to look into
ways of boosting U.S. productivity.

He said that management had made "a lot of mistakes" in the past 20 to 30 years
and should take a close look at its practices.

Mr Baldrige particularly singled out management's obsession with short-term
targets, such as quarterly earnings gains, and said executives should start
focusing on longer-term objectives.

Mr Baldrige acknowledged that Government has also hampered productivity growth
in certain businesses. In the auto industry, for example, U.S. energy policy of
holding down gasoline prices had removed any incentive for Detroit to produce
fuel-efficient cars, a failing for which it is now counting the cost.

Auto workers had also won wage rises that were out of line with productivity
increases, he said, and this had priced U.S. cars out of the market.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1203 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Latest recession 'began in July'

BYLINE: BY OUR NEW YORK STAFF

SECTION: SECTION I; American News; Pg. 4

LENGTH: 222 words

THE LATEST U.S. recession started last July, according to the National Bureau of
Economic Research, the private business analysis group officially charged by the
U.S. Government with dating business cycles.

This is somewhat earlier than most economists had thought -- August and even
September had been mentioned. This means that the period of expansion from the
previous recession in 1980 was only 12 months, one of the shortest on record.

Most economists expect the economy to show signs of recovery this quarter or by
mid-year at the latest. However, some have begun to hedge their forecasts in
light of the recent rebound in U.S. interest rates.

* Petroleum consumption in the U.S. is expected to decline for the second
consecutive year this year, the Energy Department forecast yesterday.

The department, which President Ronald Reagan wants to phase out gradually, said
petroleum consumption will decline by 0.7 per cent this year, following a 4.3
per cent decline last year.

Petrol consumption is also expected to decline for the second year running.
Petrol consumption dropped 4.2 per cent last year and the department expects it
to drop by another 1.2 per cent this year.

Oil imports, however, are expected to rise by 1.8 per cent next year after
falling by as much as 10.7 per cent in 1981.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1204 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Fresh talks on Falklands planned

SECTION: SECTION I; American News; Pg. 4

LENGTH: 246 words

BRITAIN and Argentina are preparing a new round of negotiations on the future of
the potentially oil-rich Falkland Islands, the disputed British colony in the
South Atlantic.

Fresh talks had been planned to take place in Geneva in the week before
Christmas, but were postponed because of the removal from the Argentine
Presidency of Gen Roberto Viola and the major Government reshuffle that followed
it.

According to Foreign Office officials in London, the two sides are planning to
meet early this year, probably in February, although the location of the talks
has yet to be decided.

Whitehall has yet to assess fully the implications of the change-over in
Argentina, although it recognises that the new Argentine Government may be
tempted to take a tougher stand than its predecessor on foreign policy issues.

Gen Leopoldo Galtierl, the new President, has in the past taken an
uncompromising stand on Argentina's other major territorial dispute, involving
Chile and its claims to three Argengintian islands in the Beagle Channel.

Argentina wants soveireignty over the Falkland Islands. Whitehall, however, has
always insisted it must respect the wish of the 1,700 islanders to remain
British.

Both sides are pressing for a solution because of the recent discovery of
oil-rich offshore fields near the islands. Oil companies are reported to be
reluctant to commit themselves to any major investment unless the territorial
dispute is settled.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1205 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Golden Gate Bridge re-opens

BYLINE: By Louise Kehoe in San Francisco

SECTION: SECTION I; American News; Pg. 4

LENGTH: 59 words

SAN FRANCISCO's Golden Gate Bridge was reopened yesterday after being closed for
two days by storm damage to the highway leading from the bridge to East Bay.

A huge landslide had covered the highway during a storm which saw a record 10
inches of rain fall in the area in 24 hours.

The death toll stood at 24 yesterday, and is expected to rise.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1206 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Turkey optimistic on trade

BYLINE: By Metin Munir in Ankara

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 328 words

THE TURKISH Government is forecasting a substantial increase in both exports and
imports.

The increases will continue to leave the visible trade balance in deficit, but
the Government expects a strong performance in the invisible sector to meet the
deficit, Mr Kemal Canturk, the Trade Minister, said yesterday.

Mr Canturk expected exports to rise to $5.6bn (£2.9bn) from last year's
estimated $4.5bn. Exports were up 65 per cent in the first 11 months of 1981,
he said.

Earlier this week he announced a 1982 target of $10bn in imports compared to
$8.8bn in 1981. He said yesterday that the trade deficit would be covered
partly by about $2.8bn in remittances from workers abroad and by $825m in
foreign credits.

The targets indicate the Government's confidence in the continued economic
recovery. No difficulties were expected in financing the trade deficit, which,
at $4.4bn, will be almost the same as last year.

The services balance in 1982 is expected to be in the black by a net $2.7bn.
The Government is expecting $2.6bn from expatriate workers, $400m from tourism
and $700m from other services.

It is also planning to use project credits of $900m and programme credits of
$400m this year. The main suppliers of credit are the U.S., which will provide
$200m, Saudi Arabia, $150m, and the World Bank, which will supply $400m.

The Government seems confident it will be able to bridge the overall balance
through short-term trade financing and medium-term loans.

Turkish exports grew by an impressive 54 per cent last year and also underwent
changes in their structural and geographical aspects.

Industry started to catch up with agriculture which traditionally dominates
exports. In the first 10 months of 1981, industrial exports were 48 per cent of
the total compared with 36 per cent in the same period of the previous year.
The corresponding figures for agricultural exports were 57 per cent and 47.6 per
cent.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1207 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

UK companies seek Philippines steel deal

BYLINE: BY EMILIA TAGAZA IN MANILA

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 400 words

DAVY McKEE and Direct deduction of the UK have joined forces in an attempt to
win a turnkey contract to expand a steel complex in the Philippines worth up to
$800m (£421m).

The two British companies are competing against a consortium of Lurgi of West
Germany and Voest Alpine of Austria and Kawasaki Heavy Industries of Japan in
partnership with Krupp also of West Germany.

The winning group will build an iron-making plant, a steel-making plant, and a
rolling mill at the National Steel Corporation's (NSC) complex at Iligan
Province, in southern Philippines.

The three units would integrate NSC's operations and aim to increase the
company's maximum capacity to 1.5m tonnes of slabs.

The integrated steel mill is one of the Philippine Government's 11 major
industrial projects aimed at overhauling the country's industrial policy and
shifting it away from import-substitution to large-scale, export-oriented
industries.

The others are: a copper smelter, a phosphate fertiliser plant, a diesel engine
industry, establishment of a heavy engineering industry, an aluminum smelter, an
expanded local cement industry, an integrated pulp and paper mill, a
coco-chemical plant, a petrochemical complex, and an alcogas programme.

But like some of the other projects, the steel plant plan has been scaled down.
Mr Roberto Ongping, Industry Minister, who packaged the projects, originally
envisaged a blast furnace which would have cost about $2bn at current prices.
But the government has now settled with the less costly solid reduction process,
which will use natural gas as feedstocks, and locally produced coal and products
as raw materials.

After a cabinet meeting yesterday, which centred on the government's Industrial
strategies and policies, Prime Minister Cesar Virata said that among the 11
industrial projects, the scaling down is in the integrated steel mill projcet.

Mr Virata said that six of the projects are being implemented and will come
on-stream by 1985 as originally scheduled.

These are the copper smelter, the fertiliser plant, the diesel engine industry,
the heavy engineering industry, the cement industry expansion, and the pulp and
paper plant.

Meanwhile, the contract for the coco-chemical complex, which is designed to
process the bulk of the country's coconut oil into fatty alcohol, is to be
signed formally next week with Lurgi.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1208 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Jordanian contract for Wimpey

BYLINE: By Our World Trade Staff

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 341 words

GEORGE WIMPEY International, has won a £27.4m contract from the Ports
Corporation of Jordan to build container and roll-on-roll-off berths at Aqaba

Work starts this month on the berths, which will be 350 metres long and be
carried on tubular and sheet piles. Decking will be of precast concrete
construction. It is expected that work will be completed in June, 1984.

* Lazard Brothers has arranged an ECGD-backed line of credit of £9m for the
purchase by Reliance Textiles of Bombay of 12 model SD 58 draw-texturing
machines from Ernest Scragg and Sons, a division of Stone Platt Industries, of
Macclesfield, Cheshire and of three diesel generating sets from Mirrlees
Blackstone of Stamford, Lincolnshire. Funds will be provided by Lazards and by
Bank of Baroda.

* General Electric has entered the lists against Rolls-Royce and Pratt and
Whitney in the competition to supply engines for Singapore Airlines new Boeing
747 aircraft with stretched upper decks.

At about $20m (£10.5m) for the engines plus spares for each aircraft, the deal
will be worth about $160m.

* Airbus Industrie, the European airliner manufacturing group, has won its first
order of 1982 -- one A-300 Airbus for Egyptair, worth about $30m (£15.7m),
raising that airline's fleet to eight aircraft.

This raises total Airbus orders to 503 (344 firm and 159 on option), of which
158 have been delivered.

* Ghana Airways has ordered one Fokker F-28 Fellowship jet airliner. This
brings to 191 the number of F-28s ordered to date.

* Jet America, a U.S. domestic airline, has ordered one McDonnel Douglas DC-9
Super 80, bringing to 114 the total of Super 80s ordered firmly to date, of
which 63 have been delivered.

* The Airline of the Marshall Islands has ordered one British Aerospace HS-748
airliner, bringing the total number of HS-748s sold to date to 358 to 79
operators in 50 countries.

* Boeing said in Seattle that KLM-Royal Dutch Airlines had ordered a 747 jet at
a cost of about $90m, valued in 1983 delivery year dollars.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1209 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

S. Africa to negotiate fresh trade agreement with Zimbabwe

BYLINE: BY BERNARD SIMON IN JOHANNESBURG

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 299 words

SOUTH AFRICA has agreed to negotiate a new trade agreement with Zimbabwe to
replace the preferential arrangement which the Pretoria government said would be
terminated in March, 1982.

A date and venue for negotiations have not been fixed, according to a senior
official of the South African Department of Industries and Commerce, but the
official confirmed that "we're prepared to negotiate." A meeting may be held
next month.

South Africa gave notice of its intention to terminate the agreement, signed in
1964, amid signs of a marked deterioration in political and economic relations
between Pretoria and Salisbury.

The Zimbabweans are understood to have approached South Africa late last year
about renewing or replacing the agreement.

It is not yet clear why South Africa has changed its mind, but various Western
governments are known to have suggested that it should reconsider its decision
to terminate the agreement in the interests of political stability in southern
Africa.

The present agreement is of far greater benefit to Zimbabwe than to South
Africa. It provides for the suspension of most export and import controls on
trade between the two countries, for preferenctial customs duties and for quotas
on some products.

The agreement has been a major factor in nurturing Zimbabwean industries which
rely on the South African market, including clothing, footwear and radio
manufacturers.

Although Zimbabwe is South Africa's largest market in Africa, exports are
inhibited by stringent foreign exchange controls. South African's exports to
Zimbabwe consist mainly of machinery, building materials and a variety of
consumer goods.

Whatever form a new trade agreement takes, the South African are likely to
insist on more evenly balanced benefits.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1210 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Manila concerned over drop in tourism

BYLINE: BY FRANK GRAY, RECENTLY IN MANILA

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 726 words

THE PHILIPPINES' reputation of having the largest English-speaking population in
southeast Asia, including Australia, has spurred its drive to attract foreign
tourists and to boost its international convention business.

The national tourist office in Manila says the country has enjoyed nearly three
decades of tourism growth, particularly during the hotel building boom of the
1970s. This culminated in 1980 with a record 1.1m foreign tourists, the first
time the Philippines had topped 1m.

The country's hoteliers are concerned at the sudden, though not unexpected,
downturn in tourism experienced last year. Preliminary estimates are that
tourism will have fallen by about 8 per cent in volume terms for the year. The
decline comes at a sensitive time for the hotel industry, many of whose
hostelries were beginning to show profitable occupancy rates of 60 and 70 per
cent, a welcome improvement from the 30-40 per cent levels in the years
following the building boom. Foreign tourism is worth about $500m a year to the
economy.

The decline is centred on the Ohilippines' two largest customer nations, Japan
and the U.S., whose combined tourist count comprises nearly 40 per cent of the
country's foreign visitors, and an even higher proportion of foreign exchange
revenue.

Japanese tourists are likely to have fallen by more than 20 per cent to 210,000
for the year, while those from the U.S. are seen as falling by about 5 per cent
to about 165,000.

But two other markets which have boomed in recently, Australia and Hong Kong,
are also in decline. The Australian tourist count has fallen by 10 per cent to
65,000 and Hong Kong's by 5 per cent to about 95,000. The high volume of Hong
Kong visitors is offset somewhat by the fact that a high proportion stay only a
few days. Hong Kong is a 90-minute flight from Manila.

The decline is attributed generally to the worldwide recession affecting the
tourist and air transport industries.

Officials are hopeful that any prolonged deterioration in these key markets
could be offset by continued growth in some of the newer markets. Among these
are West Germany and Britain, virtually non-existent sources of tourists a few
years ago, but which provided the Philippines with an estimated 32,000 and
21,000 visitors respectively last year, in each case an increase of 5 per cent.

Strong Italian and Swiss markets, each of about 10,000 last year, also are
expected to grow rapidly.

Another boost will come from South Korea, a scarcely touched region which has
been hampered by travel controls. These have been eased recently and the
Philippines is hoping to reap the benefits in 1983.

The Department of Tourism and the Philippines Convention Bureau have much at
stake in supporting the industry, for hundreds of millions of dollars have been
poured recently into hotel and convention facility development and into
Philippine Air Lines (PAL), the national airline.

A decade ago, Manila had four international-standard hotels, but now there are
14 five-star and eight four-star properties in the capital city of the island,
which has a population of 50m.

While Manila has been the focal point for most building, the Tourism Department
has pushed for improvement in hotels and tourist facilities throughout the
country in places such as Baguio, north of Manila, and the Legazpi, Cebu and
Zamboanga resorts to the south.

The convention business, the focal point of which is the $100m International
Convention Centre, built in the mid-1970s, is less seriously affected.

The convention centre, the largest in South-East Asia, has shown a steady growth
in bookings and is expected to host 100 international gatherings next year,
attracting 225,000 delegates.

Less satisfactory, however, is the status of PAL. An almost continually
profitable private airline until it was nationalised in the late 1970s, it has
embarked on a costly fleet and route expansion programme. It operates Airbus
and Boeing wide-bodied aircraft to various points.

The route expansions have nearly doubled its international passenger boardings
from 725,000 two years ago. But the price has been high, for the company lost
Pesos 394m (£26m) in its last fiscal year, one in which the Government, as
shareholder, increased its stake from Pesos 1bn to Pesos 3bn (£66m-£200m).

LANGUAGE: ENGLISH

GRAPHIC: Maps 1 and 2, no caption

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1211 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

More oppose Gill compensation

BYLINE: BY JOHN MOORE IN LONDON

SECTION: SECTION I; UK News; Pg. 5

LENGTH: 403 words

HIGHLIGHT: ACC SHAREHOLDERS BACK POST OFFICE PENSION FUND

EIGHT institutions holding more than 9 per cent of the non-voting shares of
Associated Communications Corporation, the entertainments conglomerate, are
planning to support the Post Office Superannuation Fund in its legal campaign to
block record compensation terms worth more than £700,000 being paid to
Associated's former managing director.

In advance of today's extraordinary general meeting of Associated Communications
voting shareholders, the Post Office said that eight more institutions had
expressed support during the day and had asked to become co-petitioners in the
legal moves against Associated.

Associated has given an undertaking that no payment will be made to Mr Gill,
whatever the outcome of the meeting until the legal action has been resolved.

Through a petition in the High Court, issued on Wednesday, the Post Office is
seeking an injunction to stop Mr Jack Gill, 62, the former managing director,
receiving £560,000 in cash.

The fund is also seeking through the injunction to stop Mr Gill from being
allowed to buy a company house with a market value of £275,000, for £165,822.
Both settlements are due to be approved in two resolutions by voting
shareholders at today's meeting.

The institutions which have declared their support to the Post Office cause are
Imperial Group, the Electricity Council Superannuation Fund, Eagle Star, Sun
Alliance, Norwich Union, Equity and Law, Co-operative Insurance Society, and the
West Yorkshire Metropolitan County Council.

The institutions who are seeking to block the payment represent in total around
12 per cent of the nonvoting shares.

Lord Matthews, an Associated director who owns or influences about 9 per cent of
the voting shares, has indicated that he will not support the resolution for the
payment of the £560,000 to Mr Gill.

Sir Leo Pliatzky, another Associated director, has described the whole episode
as "unsavoury and distateful," and is unlikely to use his 500 voting shares to
vote in favour.

* Mr Malcolm Anson, the former chairman of Imperial Group who retired early in
July last year, clarified speculation about his compensation for loss of office
under his service agreement yesterday.

He received £85,000 pre-tax and exercised an option to take an immediate
pension. The company said his settlement "was no more than he was likely to
have obtained by pursuing his claim at law."

LANGUAGE: ENGLISH

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1212 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

BL men snatch back tea time

BYLINE: By Arthur Smith

SECTION: SECTION I; UK News; Pg. 5

LENGTH: 164 words

WORKERS in the BL Cars plant at Cowley, Oxford, have voted to claw back
management proposed cuts in tea breaks, by leaving the factory 15 minutes
earlier each day.

The decision, which, according to union leaders, was supported almost
unanimously by more than 2,000 workers, has prompted BL to delay the
10-minutes-a-day cut in relaxation allowance due to take effect on Monday.

The company insisted it had not climbed down. It wanted agreement with the
workforce, and the earlier that union officials could meet to discuss the issues
was next Tuesday.

BL appears to be treading carefully to avoid a repetition of the strike by more
than 4000 workers at Longbridge, Birmingham, which halted production of the
Metro car for four weeks late last year and cost £100m in lost production.

There is resentment among track workers that they should be called on, through
reduced rest periods, to finance the one-hour cut in the working week introduced
last November.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1213 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Majority of Ford workers vote to accept wage offer

BYLINE: BY IVO DAWNAY, LABOUR STAFF

SECTION: SECTION I; UK News; Pg. 5

LENGTH: 234 words

FORD union leaders yesterday won a clear majority in favour of their
recommendation to agree to the company's 7.4 per cent pay and conditions package
following acceptance votes by night shifts at the Dagenham body and engine shops
and at the Langley truck plant.

But there were rowdy scenes at Dagenham's assembly plant early yesterday morning
after shop stewards declared a vote by 2,300 nights, shift workers to be
indecisive.

One steward suffered a neck injury after an object was thrown at the platform
and several panes of glass were broken when angry workers lobbied the convenors'
office.

A split vote was also recorded at Halewood's transmission shop after several
shows of hands failed to produce a clear result, while the 5,500 strong body
shop came out against the offer.

The final tally indicates that 16 plants, accounting for a total of 29,100
employees, have voted to accept the offer with seven plants, representing
20,710, opposing a settlement.

The official announcement of the result will come at a meeting of the Ford
unions' 56-strong negotiating team in London today. However, Mr Ron Todd, the
chief negotiator, said the meeting was largely a formality.

The 13 Ford unions are now seeking a meeting with the management on Wednesday in
order to clear up detailed points still outstanding over the introduction of the
company's new efficiency programme.

LANGUAGE: ENGLISH

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1214 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Ultramar hopeful after find in N. Sea

BYLINE: By Ray Dafter, Energy Editor

SECTION: SECTION I; UK News; Pg. 5

LENGTH: 77 words

AN international exploration consortium led by Ultramar, the independent British
group, has made a promising oil discovery in the North Sea.

The find of light, high-quality oil was made in block 13/29 in the Outer Moray
Firth, some 50 miles north-east of Peterhead, Scotland. It is the first
discovery in that particular part of the Sea.

Ultramar said test flow had reached 4,142 barrels a day from a 54-ft (gross)
section of Jurassic sandstone.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1215 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

BA faces fight over terminal

SECTION: SECTION I; UK News; Pg. 5

LENGTH: 105 words

EFFORTS by British Airways to build a fifth passenger terminal at London's
Heathrow Airport are expected to lead to a major public row. The plan is to
locate the terminal on the site of an existing sewage works as an alternative to
developing Stansted Airport in Essex.

Documents submitted by British Airways this week to the public inquiry into the
development of Stansted identify two possible alternative locations for the
sewage works - one near Dorney and Eton Wick, close to Slough, and the other at
South Iver, between Colnbrook and the M4 motorway. Both sites are in areas
protected against development.

LANGUAGE: ENGLISH

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1216 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Channel freight traffic improves

SECTION: SECTION I; UK News; Pg. 5

LENGTH: 60 words

FREIGHT traffic carried from Britain to continental Europe on roll on/roll off
ferries increased by 16 per cent during the third quarter of 1981 compared with
the corresponding period in 1980.

The Department of Trade said 157,000 vehicles were carried during the 1981
quarter, confirming ferry companies' indications that their business is
recovering.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 8, 1982, Friday

Business failures at record high

SECTION: SECTION I; UK News; Pg. 5

LENGTH: 31 words

BUSINESS failures reached a record level in 1981 with 8,227 company liquidations
in England and Wales. This was 20 per cent up on 1980, and 81 per cent higher
than the 1979 total.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1218 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Closed-shop penalties 'could bankrupt smaller companies'

BYLINE: BY CHRISTIAN TYLER, LABOUR EDITOR

SECTION: SECTION I; UK News; Pg. 5

LENGTH: 259 words

THE SCALE of compensation for closed shop "victims" proposed by the Government
could be revised downwards when new trade union legislation is published
shortly.

Mr Norman Tebbit, Employment Secretary, is coming under strong pressure from
industry to scrap the proposed minimum compensation for employees who lose their
jobs for refusing to be members of unions in closed shops and are subsequently
judged by industrial tribunals to have been unfairly dismissed.

The CBI told Mr Tebbit yesterday that the unlimited compensation with minima of
£20,000 to £24,000 in some cases, could bankrupt smaller firms.

Sir Terence Beckett, director general, claimed the plans outlined in a
consultative document "could cause real damage to industry." He said: "It is
conceivable that a small firm could be bankrupted in the event of a high award.
If the compensation is pitched at too high a level it could lead to genuine
abuse by individuals without a genuine grievance."

The CBI's criticism follows a similar complaint by the Engineering Employers
Federation, while the TUC - which rejects the entire legislative package - has
also protested that the large sums would attract mischievous claims.

Mr Tebbit was asked yesterday to scrap or reduce the minima, and put a limit on
compensation of £16,050 in cases where the employee did not want the job back or
it was found impracticable to order his re-engagement. The limit should be
£26,580 in cases where a tribunal ordered reinstatement and the employers did
not comply, the CBI said.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 8, 1982, Friday

Alliance agrees 'rough parity' in Commons

BYLINE: By Our Political Editor

SECTION: SECTION I; UK News; Pg. 5

LENGTH: 193 words

LEADERS of the Liberal and Social Democratic parties are to resume negotiations
about who should represent the Alliance at parliamentary elections. But the
agreement, reached at a joint meeting yesterday, is tentative and cautious.

Joint negotiations will restart in about half the seats in England where talks
were already under way or dates have been fixed for meetings. But no new
negotiations will start until a meeting of the joint national negotiating
committee on January 26 reviews progress in the interim.

The meeting yesterday of the eight-strong negotiating teams from each side
attempted to defuse the clash between SDP and Liberal members which had built up
in some places before Christmas over who should fight the winnable seats.

After the meeting Mr William Rodgers of the SDP said both parties were committed
to "a rough parity in the next House of Commons." This represents a significant
addition to the existing criteria of the national guidelines agreed last
October.

The additional criterion is intended to overcome some of the worries about a
possible disparity of MPs between the parties after the next election.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 8, 1982, Friday

Vauxhall offer rejected

SECTION: SECTION I; UK News; Pg. 5

LENGTH: 107 words

MORE than 2,000 white-collar workers at Vauxhall Motors have overwhelmingly
rejected a 6 per cent pay offer in a ballot held by TASS, the white-collar
section of the Amalgamated Union of Engineering Workers.

Union officials have not ruled out industrial action if the company fails to
improve its offer.

Vauxhall had offered a 4 per cent rise plus a further 1 per cent for the
abolition of a Friday rest break.It was also prepared to add a further 1 per
cent if the unions did not press for a one-hour reduction in the working week.

Vauxhall has told the unions that it cannot afford to cut the hours for office
workers.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1221 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Liberals unveil 1m jobs plan

BYLINE: BY PETER RIDDELL, POLITICAL EDITOR

SECTION: SECTION I; UK News; Pg. 5

LENGTH: 374 words

A £9bn package to create more than 1m jobs within three years was unveiled
yesterday by the Liber al Party.

Mr David Steel, the Liberal leader, said the measures represented "a bargain
price to pay for revitalising our economy."

The proposals mainly involve extra public sector investment to improve the
infrastructure of the economy, as well as subsidies for the long-term
unemployed.

Speaking at a press conference yesterday Mr Steel said the programme could not
be achieved without an Alliance government which can bridge the two sides of
industry. He said the programme "was not substantially different from the
policies announced so far by the Social Democrats."

The measures include spending of £500m on housing, especially in inner cities
£2bn on investment in the regions, such as the Channel tunnel or bridge and a
further £1bn in employment subsidies.

* More than 600 people making electro-mechanical instruments in two companies in
the UK are being made redundant because of weak demand in the home market.

Brown Boveri Kent is to shed 300 staff at two subsidiaries, while 360 jobs are
to be lost at Taylor Instruments in Stevenage.

* Water and sewerage workers in the industry's two largest unions were divided
yesterday over the employers' pay offer of 9.1 per cent, though inter-union
discussions are expected eventually to lead to an overall acceptance of the
package.

* Leaders of 85,000 manual workers in the electricity supply industry - one of
the most potentially powerful public sector groups - yesterday presented a claim
for a "substantial" increase in pay.

The four unions also want extra increments added to pay scales; improved
holidays; higher shift, stagger and standby payments; and a further reduction in
the current 37-hour week. They also stressed the need to reduce the retirement
age.

* Shipbuilding unions are to resume national-level negotiations with British
Shipbuilders, and will draw up a pay claim for the country's 70,000 shipyard
workers later this month.

* Lorry drivers in the East Midlands have accepted a 7 per cent pay offer from
local members of the Road Haulage Association - the first settlement for drivers
in the private hire-and-reward sector.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1222 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Local councils 'underspend £730m'

BYLINE: BY ROBIN PAULEY

SECTION: SECTION I; UK News; Pg. 5

LENGTH: 231 words

LOCAL authorities in England are now expected to underspend their capital
account cash limit for the current financial year by £730m (23 per cent), only
10 per cent of which can be carried forward to the next financial year starting
in April.

In addition, there is likely to be a further £170m of "unused" expenditure which
counts against the cash limit but not against capital allocation including
expenditure met from insurance funds (£5m) and the capital value of leased
vehicles, plant and machinery (£110m).

Another £30m of unused capital receipts and trading profits join the £1bn of
capital receipts which had already been accumulated and banked rather than used
for capital projects by the end of the last financial year.

The main under-expenditure expected by the Environment Department by the end of
the current financial year breaks down to forecast actual net capital
expenditure of:
* education, £352m (underspend of £15m);
* social services, £62m (-£30m);
* housing, £953m (-£466m);
* transport, £528m (-£103m);
* other service blocks, £537m (-£114m).

This brings the expected net expenditure on capital projects to £2.431bn against
an allocation of £3.160bn if historical trends based on first-half spending are
carried through. Even a very large surge in the last quarter could not now
prevent a substantial underspend.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1223 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Extent of export curbs on Gafta goods

SECTION: SECTION I; UK News; Financial Times Commercial Law Report; Pg. 6

LENGTH: 1212 words

HIGHLIGHT: PANCOMMERCE SA v VEECHEEMA BV
Queen's Bench Division (Commercial Court): Mr Justice Bingham: December 14 1981

WHERE a seller possesses sufficient goods to perform his contract with a buyer,
and has a government licence to export the agreed quantity, he cannot assert
that the government's refusal to issue more licences restricts him from
exporting those goods, when the reason for his failure to deliver is that he has
allocated part of the quantity to a person to whom he is under no contractual
obligation.

Mr Justice Bingham so held when dismissing an appeal from an award of the Board
of Appeal of the Grain and Feed Trade Association (Gafta) confirming an
arbitrators' decision that Pancommerce SA, sellers, were in default under a
contract with Veecheema BV, buyers of sugar beet pulp pellets.

Clause 22 of Gafta form 100 provides: ". . . In case of prohibition of export .
. . or in case of any executive . . . act done by or on behalf of the government
of the country of origin . . . where the ports of shipment . . . are situate,
restricting export, whether partially or otherwise, any such restriction shall
be deemed by both parties to apply to this contract and to the extent of such
total or partial restriction . . . this contract or any unfulfilled portion
thereof shall be cancelled."

HIS LORDSHIP said that the sellers sold 1500 metric tons of Spanish sugar beet
pellets to a Dutch company called Lucerna BV, to be shipped in June or early
July 1976. When making the contract, they informed Lucerna that if they
obtained more pellets later in the year, Lucerna could have "first refusal" up
to 1500 tons.

Pursuant to those arrangements the sellers obtained a licence from the Spanish
Government for the export of 3000 tone of pellets.

The export of sugar beet pulp pellets had been prohibited by Spanish law since
1970, unless a licence was obtained from the Ministry of Commerce. Such
licences were obtainable as a matter of course, and did not on their face refer
to a particular transaction or named person.

On June 29, seven days after obtaining their licence, the sellers entered into a
written contract with Veecheema for the sale of 1500 to 2000 metric tons of
pellets. The contract incorporated the terms and conditions of Gafta form 100.

In the summer of 1976 there was a high demand for Spanish sugar beet and the
government became worried that its domestic market might run short. So, shortly
after the sellers had contracted with Veecheema, it decided, without warning, to
take the unprecedented step of refusing all applications for foodstuff export
licences submitted after July 1. The sellers were informed that there was no
prospect of a licence being granted after that date.

The sellers, being licenced only for the export of 3000 tons, 1500 of which had
been sold to Lucerna, felt they had a moral commitment to deliver pellets to
Lucerna under the "first refusal" arrangement, as well as a legal commitment to
deliver 1500 tons to Veecheema.

They resolved their dilemma by delivering 774 tons to Lucerna, and 664 tons to
Veecheema. They failed, therefore, to deliver the full contractual quantity to
Veecheema. The question now before the court was whether the sellers were
liable to Veecheema for non-delivery.

Mr Longmore, for the sellers, submitted that under clause 22 of Gafta 100, where
a licensing system was in force at the time a contract was made and the
government of the country of origin subsequently restricted exports of goods of
the contractual description, the contract was cancelled whether or not the
seller already had a licence to export the contractual quantity. The sellers'
conduct was therefore irrelevant, and even if it were not, their only obligation
was to act reasonably and they had acted reasonably in dividing the goods.

Mr Merriman, for Veecheema, said that if the Spanish action fell within clause
22 at all, it was only deemed to apply "to the extent of such total or partial
restriction", and since the extent of the partial restriction could not be
identified in the present case, the clause was inoperable.

On the issue as to how clause i2 was to be construed and applied, there was
radical divergence between the parties. Each side told his Lordship that a
decision in favour of the other would be greeted with incredulity by the trade.

The decision of the Spanish authorities was not a "prohibition of export" under
clause 22. Exports could, and did, continue; but it was impossible to conclude
that there was not an "executive act . . . restricting export." The withholding
of licences pursuant to government instructions was an executive act, the object
and result of which were to restrict exports. It was a partial restriction, the
line being drawn between supplies which were already licensed on July 1, and
those which were not. That was, moreover, plainly an "act done by or on behalf
of the country of origin . . . where the ports of shipment . . . are situate."
Mr Merriman's submission that the clause was wholly inapplicable must therefore
be rejected.

However, it was only "to the extent of" the restriction that fulfilment of the
contract was deemed to be prevented, and only to that extent that the contract
was cancelled under clause 22. The restriction applied to any sugar beet export
contract which was not already covered by a licence on July 1. The clause
therefore required a very limited factual enquiry into whether the contract fell
within the extent of the restriction (ie whether it was not covered by a
licence). If it did, the contract was cancelled wholly or in part; otherwise
not. That seemed to be the natural meaning and application of the clause.

At the date of the Spanish Government's executive act, the sellers had a
contract with Lucerna to ship 1500 metric tons of pellets, and a contract with
Veecheema to ship 1500 to 2000 metric tons. Although obtained with an eye to
the "first refusal" arrangement with Lucerna, the licence was available to cover
the minimum quantity of 1500 tons required by Veecheema, as well as the
contractual 1500 tons required by Lucerna. Both the orders could lawfully be
met. The contract, therefore, did not fall within the extent of the restriction
resulting from the executive act.

The "first refusal" arrangement with Lucerna was non-contractual. It was never
reduced to writing; no price or quantity, other than the maximum, was agreed; no
period was agreed for shipment; and nothing was said as to the contract
conditions. It was an informal understanding, not a binding agreement. There
was therefore no call to prorata orders between the two recipients, and no issue
could arise as to the reasonableness of the sellers' conduct in that connection.

Even if such an issue could arise, there was no authority for the proposition
that where a seller's ability to perform was impeded by a governmental act, he
might act reasonably if he allocated supplies among customers to whom he was not
contractually conmitted as well as those to whome he was.

The sellers could, and should, have shipped 1500 metric tons to Veecheema, and
they could not rely on clause 22 of Gafta 100 to excuse their failure to do so.

For the sellers: Andrew Longmore (Middleton, Potts & Co)

For Veecheema: Nicholas Merriman (Durant Piesse)
By Rachel Davies, Barrister

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1224 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Societies look for banking business

BYLINE: By William Hall, Banking Correspondent

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 231 words

BRITAIN'S 250 building societies are expected to become more involved in the
provision of money transmission services during the next decade as the
introduction of new technology reduces the dominance of the clearing banks in
this sphere.

Several building societies are already experimenting with plastic card-based
automated teller machines (ATMs), which are in many respects similar to the
banks' growing network of cash dispensers.

A report being prepared by the Office of Fair Trading (OFT) is believed to argue
that the building societies should be allowed to participate in any electronic
funds transfer system (EFTS) involving retailers.

Traditionally, the clearing banks have dominated the money transmission services
in the UK. They distribute the bulk of the nation's cash, which accounts for 95
per cent of all transactions, process the vast majority of cheques, and control
the major credit-card companies.

Until now, the cost of entry into the money transmission business has been so
large that new participants have been prevented from competing with the banks.

However, the clearing banks have recently announced their intention of going
ahead with pland for a new money transmission service, or payments system, based
on terminals at retail outlets. This could open the way to re-entry of new
competitors, in particular the building societies.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1225 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Ulster's man in a hurry

BYLINE: BY BRENDAN KEENAN IN BELFAST

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 750 words

HIGHLIGHT: TIME RUNNING OUT FOR THE NORTHERN IRELAND SECRETARY

DESPITE HIS relaxed manner Mr James Prior, Secretary of State for Northern
Ireland, is a man in a hurry. Unlike most of his predecessors, he arrived
midway through a parliamentary term and win or lose, it is unlikely that he will
be back in Belfast after the next election.

That gives him little time, if he wants to make a mark in Ulster, and all the
signs are that he wants to do just that. Not only because the battered province
needs progress, both economic and political, but also because Mr Prior himself
cannot afford simply to drop from sight for the next two years.

Such a timescale can be dangerously short in Ulster terms, where local
politicians have learned to play very long indeed. Even those who are well
disposed to a fresh political initiative worry that talk of elections this
spring or summer may be pushing things too fast.

At present it is merely talk. Some of Mr Prior's thoughts have become public,
but he has committed himself to nothing, especially in his discussions with
local politicians. There is still time to pull back if the temperature does not
feel right.

At present it seems distinctly chilly. Mr Prior inherited as difficult a
situation as any Secretary of State. The Maze hunger prison strikes left behind
more communal bitterness than perhaps at any time since the troubles began.
Politicians have grown so weary of the search for solutions that there is almost
an unspoken acceptance that doing nothing is as good a policy as any.

On the other hand, the Anglo-Irish dialogue, while it has given him problems
with the Unionists, means that Mr Prior enjoys a better working relationship in
Dublin than most of his predecessors.

He did arrive with one self-inflicted disavantage - his widely publicised
reluctance to take the Ulster portfolio in the first place. In an interview
last week, Mr Prior frankly admitted that he would have preferred to stay in
Employment, but said that was not the same thing as not wanting to come to
Belfast when the post was offered.

Nevertheless, the episode is still used against him, particularly by the Rev Ian
Paisley and his supporters. The positive side of the Cabinet rows is that Mr
Prior is the most senior Secretary of State since William Whitelaw, and probably
has the best team of ministers to inhabit Stormont Castle.

Ulster politicians refer to his obvious confidence and the ability to absorb a
brief or an argument and to compare him favourably with some of his predcessors.
But confidence can have its own drawbacks, especially when one is in a hurry.

Mr Prior made early blunders about the exact status of the B Specials and the
report of the 1976 constitutional convention. In fairness, the hunger strikes
and the deteriorating security situation which followed, left little time for
reading himself in before having to face angry deputations.

Even this week's news conference on his economic package, however, was not an
unqualified success. Reporters felt they needed more information and there were
complaints that the figures were unclear.

It is a familiar enough situation for those who have observed the years of
direct rule. It is difficult for British ministers, especially new British
ministers - to appreciate small scale of Ulster affairs and the detail with
which everything is reported and analysed.

Mr Prior himself admitted in an interview with a Northern Ireland commercial
radio station, Downtown, last week, that it was not easy for an English
politician to be plunged into such a sensitive situation, but he felt he was
getting to grips with it.

Mr Prior is trying to learn and make progress simultaneously. Officials have
been impressed at the flow of ideas from the Secretary of State and his
ministers. Not all of them are new ideas but a broad approach seems to be
emerging.

No one now is looking for an overall agreement between the warring parties.
Instead progress is to be made in stages and each stage should be able to stand
on its own merits. That is one reason the economy seemed a good place to start.
Words such as "unboycottable" and "resistant" have been used. Mr Prior's
favourite phrase is "agree to disagree."

Suspicious Ulster politicians will try to see where the stages are leaving and
try not to begin the journey if they don't like direction. Mr Prior has already
shown - during the Bradford killings and the Loyalist strike that followed -
that he does not lack nerve. But has he enough time?

LANGUAGE: ENGLISH

GRAPHIC: Picture, James Prior: only one chance to succeed

Copyright 1982 The Financial Times Limited

1226 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Textiles recovery 'in jeopardy'

BYLINE: By Nick Garnett, Northern Correspondent

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 308 words

PROSPECTS for recovery this year in the UK's cotton and man-made fibre industry
have been put in "jeopardy" by the new Multi-Fibre Arrangement, the British
Textile Employers Association said yesterday.

One aspect of the MFA protocol - the use of certain quota levels in relation to
actual import levels - could alone cost more than 28,000 jobs in the UK, or 5
per cent of the industry's workforce, the association said.

The benefits of any improved economic activity and home demand would almost
certainly be reached by low-cost producers, and not the home industry.

Mr James Leach, the association's president, said the reaction of the UK
industry, largely based in Lancashire, was one of "bitter disappointment."

The renewed MFA - the framework in which 80 per cent of world trade in textiles
and garments is carried out - has already been attacked by Comitextil - the
European textile body - and the British clothing industry.

Mr Leach said employers believed the renewed protocol did not reflect the
objectives of the industry, nor the policies agreed by the EEC before the final
negotiations.

The general vagueness of the protocol would greatly reduce the change of
concluding satisfactory bilateral agreements between exporters and suppliers
this year within the MFA's legal framework.

The basing of quotas next year upon 1982 levels rather than on imports during
1980 - the latest year for which available figures give a realistic indication
of market demands would weaken the effectiveness of the new MFA.

Mr Leach added: "The Government must insist in Brussels on the utmost firmness
in the EEC's approach to the bilateral negotiations, and if it is to maintain
credibility with the industry, it must press firmly for the adoption of 1980
imports as the basis for quota levels in 1983 and succeeding years."

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1227 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Cargo revenue boost at BCal

BYLINE: By Michael Donne, Aerospace Correspondent

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 112 words

British Caledonian Airways earned nearly £55m, or 17 per cent of its total
revenue, from cargo in the year to October 31 last, and is planning to increase
this to about £57m in the current year.

Mr David Brooksbank, general manager (cargo), said yesterday that scheduled
service cargo (cargo carried in the holds of passenger jets and on all-cargo
services) amounted to £46.7m (a rise of 54 per cent), while charter cargo and
mail accounted for the rest.

The big rise in scheduled service cargo was due to increased operations on the
North Atlantic and to Hong Kong.

Total tonnage of cargo carried in 1980-81, rose from 35,739 tons to 51,999
tonnes.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1228 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

How the Mini principle smooths the waves;
Finding the right angle to beat the sailors' vibration headaches

BYLINE: ALAN CANE; EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 7

LENGTH: 559 words

HIGHLIGHT: As the International Boat Show opens in London ALAN CANE looks at how
the constant velocity joint of the revered Mini now plays a part, in giant
versions, in reducing shipboard vibration.

THE SECRET of front-wheel drive in the BL Mini has now been put to novel use --
to smooth the life of marine engines.

Halyard Marine of Brentford, Middlesex, and GKN have developed giant versions of
the constant velocity joint which made possible front-wheel drive and cornering
on the Mini for boats and ships. The new joint will take 100 times the torque
of the Mini version.

The problem is that in conventional craft with inboard engines, accuracy of
alignment of the engine and propeller shaft is critical. More than two
thousandths of an inch out and the ship vibrates unacceptably and propellor
shafts wear out in a matter of weeks.

Furthermore, the whole assembly has to be tilted at an angle so the shaft can
point down through the bottom of the boat. An engine at an angle means less
headroom up above, giving naval architects -- and sometimes sailors -- a
headache.

The conventional technique was to align the engine and propeller shaft with
extreme accuracy -- a process taking several days for a large boat -- and then
bolt everything down so securely that every last tremor and vibration was
transmitted to the hull.

As Mr James Grazebrook, a director of Halyard Marine, puts it: "The extent of
the vibration this causes is demonstrated by the way the cutlery rattles in the
restaurant of a cross-Channel ferry."

The Halyard approach is to put massive GKN constant velocity joints at each end
of a short propellor shaft. Each joint will take up to five degrees of angle,
so the engine can be installed horizontally and needs only to be aligned to
within one inch.

Fisherman

The joints allow the engine to move around freely relative to the shaft, so the
engine can be soft mounted, reducing noise and vibration by a claimed 50 per
cent and 85 per cent respectively.

Mr Grazebrook says the idea is not new; on the North East coast of Britain,
fishermen are stripping constant velocity joints out of old Minis, wrapping them
in polythene bags and installing them in their boats.

They replace them monthly as the sea water seeps in and renders them
unserviceable (Minis were never intended to corner under water).

Production costs for the new massive joint are about £1.5m, but an identical
joint is used on the larger excavators so making production runs an economic
proposition for GKN.

Halyard has solved another problem of vibration by using a heavy duty thrust
bearing mounted at the inboard end of the propellor shaft to take the push from
the propellor directly onto the hull rather than onto the back of the engine.

The system will accept up to 600 horse power at present, enough for a paddle
steamer or a small trawler, but in principle it could be extended to almost any
size of vessel.

There is a prototype installation on the Elizabethan, a 120 foot replica
Mississippi Paddle Steamer working from Charing Cross Pier on the Thames.

Mr Grazebrook claims that passengers are unable to tell whether the engines are
running or not.

Called GKN Aquadrive, the new system is expected to be of most interest to naval
architects, although North Sea oil rig specialists are showing interest; the
rigs flex slightly in heavy seas, causing alignment problems with every piece of
rotating equipment aboard.

Halyard is on 01-560 8403, and is showing Aquadrive at the Boat Show.

LANGUAGE: ENGLISH

GRAPHIC: Pictures 1 and 2, SILENT engines on the Charing Cross Mississipi
prototype

Copyright 1982 The Financial Times Limited

1229 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

BYLINE: MAX COMMANDER; EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 7

LENGTH: 495 words

HIGHLIGHT: MAX COMMANDER reports on the latest marine diesel offering form Fiat
designed to delight the power boat and water ski enthusiasts.

COINCIDING with the Boat Show, AIFO SpA of Milan, a wholly owned subsidiary of
Fiat has launched in London its new Fiat 8061 SRM marine diesel engine.

The 8061 SRM is directly derived from the 8061 SM, a design concept which was
further developed in the production of the engine designed to break the diesel
powered world water speed record achieved in 1979.

Fiat AIFO, the biggest company in the field of inboard marine diesels in Italy
and one of Europe's major manufacturers, believes that the engine will arouse
considerable interest among power boat enthusiasts and water skiers, primarily
because of the engine's dimensions and claimed fuel savings.

According to Fiat, tests on Lake Como by the Morgan Ski Club of Lezzeno showed
operating costs to be only 30 per cent of those from similar capacity petrol
engines.

The 8061 SRM is a four-stroke direct injection diesel with six in-line cylinders
turbocharged and with intercooling.

The latter is achieved by the use of two circuits. The primary is a closed
fresh water circuit, cooled by the secondary raw water circuit (open), using a
water to water heat exchanger of the tube element type.

The secondary circuit also cools the turbocharged air through an air/water heat
exchanger and the engine oil through an oil/water heat exchanger.

Total swept volume is 5,500 cc with a maximum power output of 220 hp at 3,200
rpm and a dry weight without gearbox of 540 kg.

Fiat claims a high power/weight ratio with dimensions of 730 mm high and 1,020
mm length.

Forced lubrication is by a gear driven pump, while oil filtration is a full flow
system incorporating a safety by-pass valve.

The fuel lift pump is of piston type injection, pump driven, and two filters in
parallel ensure adequate fuel filtration.

The monobloc construction cylinder block is cast integrally with the crankcase
in high duty cast iron, the sides of the crankcase extending below the
crankshaft centre line to act as a stiffening skirt. Renewable dry liners are
pressed into the cylinder bores.

The crankshaft is supported by seven main bearings and incorporates integral
balance weights of special heat treated steel to give high resistance to
fatigue.

Pistons are of die cast high aluminium alloy and incorporate a special insert
into which the top piston ring is located. Connecting rods of high tensile
steel have oil ways to lubricate the liners and gudgeon pins.

Standard equipment is a 12V electrics system with starter motor of either a
Bosch type JF 12 or 3kW or a Marelli MT 68AC of 3.5wW. A choice of gearboxes is
available.

Fuel consumption ranges from 170 gm/CV hour at maximum power falling to 164
gm/CV hour under normal seagoing conditions.

Prices start at £5,535 reaching £6,827 depending on choice of gearbox and other
options. Full technical details are available from Iveco (UK) Fiat Aifo
Division, Road One, Industrial Estate, Winsford, Cheshire (06065 53181).

LANGUAGE: ENGLISH

GRAPHIC: Picture, The Fiat 8061 SRM marine diesel engine

Copyright 1982 The Financial Times Limited

1230 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Low cost shipborne satellite terminal

BYLINE: GEOFFREY CHARLISH; EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 7

LENGTH: 303 words

A NEW design of low cost shipborne satellite terminal aimed mainly at the
smaller vessel is under development at the Home Office, in conjunction with UK
industry.

At the moment some 800 ships are believed to be using the "Standard A" terminal
which employs a 1.5 metres diameter relatively high gain, narrow beamwidth dish
aerial with elaborate tracking system, for use mainly with the U.S. Marisat
system of orbiting satellites. Each of the shipborne stations costs up to
£25,000.

Operational

The new system on the other hand, intended mainly for use with the new series of
six satellites to be put up by Inmarsat, the International Maritime Satellite
Organisation, is likely to have an installed cost between £5,000 and £10,000.

When all six of the geostationary craft are up and operational, probably by
1989, any ship on any ocean will have virtually instantaneous contact with any
land-based telephone.

The design approach for the new compact terminal has been to use a smaller dish
aerial (0.4 metre) of less gain and wider beamwidth. This reduces the
steering/platform stabilisation costs while the consequent problem of increased
noise is taken care of by using a digital transmission technique employing pulse
code modulation.

Converter

Main part of the shipborne electronic hardware is being supplied by Microwave
Associates of Dunstable. It consists of an up converter (transmitter) and down
converter (receiver) sharing a common local oscillator which takes the form of a
crystal controlled frequency synthesiser with thumbwheel selection of 341
channels.

The transmitter tunes over the range 1636.5 to 1645.0 MHz and can deliver up to
25 watts to the dish. The receiver works over a range about 100 MHz lower and
can deal with input signals down to - 100 dB.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1231 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

One unit mobile grit and water blaster

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 7

LENGTH: 132 words

A MACHINE combining water and grit blasting in one transportable unit is now
available from Miner Industrial of St Helens, Merseyside.

Developed by Seaguide Fabrications, the blast stream can be adjusted for wet or
dry blasting to achieve the required finish or profile when cleaning stone,
concrete or plastic materials.

Capacity

Pressure at the nozzle is variable from 30 to 125 psi. Compressed air
requirement is 250 to 350 cfm depending on nozzle size while the unit has a
capacity of 450 lbs of expendable abrasive.

The unit is eight feet long, four feet wide, and five feet high. Miner
Industrial is at Moorfoot Industrial Estate, Parr, St Helens, Merseyside (0744
39595) and Seaguide Fabrications at Unit 6, Garston Industrial Estate (Liverpool
4940388).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1232 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Range of steel tanks

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 7

LENGTH: 96 words

A RANGE of tanks erected from modular steel components and with flexible
membrane liners is being offered by MacLeod and Miller (Engineers) of Glasgow.

The company says that components can be hand carried through doorways for
erection, using ordinary hand tools, where space is restricted.

Originally developed by ModuTank in New York, the Scottish company is
manufacturing three sizes -- ModuStor of 30m<3> capacity, the Maxi-Pak
(8m<3>-70m<3>) and the Minipak (1m<3>-5.5m<3>).

McLeod and Miller is at Whistlebury Road, Blantyre, Glasgow (0698 822231).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1233 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Censor causes a stir in the U.S.

BYLINE: BY LOUISE KEHOE; EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 7

LENGTH: 543 words

THE QUEST of the semiconductor industry to make ever smaller and more densly
populated chips has a new ally in the form of a complex photo-lithographic
system produced by Censor Products, a small Liechtenstein company.

Censor, new to the semiconductor production equipment business, has caused a
stir in the U.S. by introducing a "stepper" system that significantly reduces
the size of the microminiature circuit patterns that can be optically produced
on a silicon wafer.

The stepper is an ultraprecise micro-lithographic system that aligns and
projects patterns of minute circuitry onto wafers of silicon.

Resolution

The system -- which was first announced early last year -- has already been
purchased for evaluation by some of the leaders in the semiconductor business --
intel, IBM, ITT, and Siemens. Five more systems are on order, each at a price
of $750,000, according to the company.

Several other U.S. and Japanese companies make steppers -- but none, Censor
claims, can match its fine line resolution, including market leader GCA
Corporation of Bedford, Massachusetts.

Key to Censor's success are the sophisticated optics that give Censor's stepper
the ability to produce features as small as 0.7 microns wide on a silicon chip.
That is almost half the size of those made by competing stepper systems. By
comparison the top selling stepper system from GCA has a resolution of 1.2 to
1.4 microns.

The resolution of the Censor system also challenges that of far more expensive
electronbeam systems that have been mooted for the next generation of
semiconductor devices.

"The Censor system has a superior lens," says Gerry Parker, vice-president for
Technology at Intel. According to Herner H. Tabarelli, Censor president, his
company has obtained exclusive rights to use the special lens from its
manufacturer, Zeiss.

How does a small company with no previous experience manufacture such a complex
system? "We have contracted with Omega of Switzerland to manufacture the
mechanical elements of the system," says Tabarelli. "They have the craftsmen
needed fo rthe precision work, and they need the work because of the poor state
of the Swiss watch industry."

Finer resolutions are always the goal of the semiconductor chip-maker because
they mean more devices making more complex circuits on each chip.

To make the latest generation of memory devices, 64K RAMs, most manufacturers
agree that the high resolution of a stepper system is needed for the most
critical stages of production. When it comes to making 256K RAMS -- parts that
are expected to go into production in 1983 -- steppers will be essential.

Theoretical

While chip makers are pleased with the new Censor system, not surprisingly,
perhaps, competitors GCA are not as easily impressed. Bill Schneider, product
marketing manager for the GCA stepper, claims that Censor's specifications are
theoretical and probably could not be attained in a real production environment.

GCA has sold more than 300 stepper system to semiconductor producers throughout
the world, and has a massive service organisation to support customers in case
of system failure.

"We do not regard Censor as a significant competitor," said Schneider.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1234 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

An international debut worth singing about

BYLINE: REPORT BY RAY SNODDY

SECTION: SECTION I; Harrogate Conference Centre; Pg. 8

LENGTH: 1019 words

IN APRIL, the town of Harrogate in North Yorkshire will show a more intense
interest than usual in the Eurovision Song Contest -- an interest that will have
little to do with the quality of the lyrics.

For the contest is being staged in the town's new £28.5m conference complex and
the event is, in effect, the international debut of a centre designed to keep
Harrogate in the first division of British conference venues and allow the town
to compete for a larger slice of the lucrative international conference trade.

Not only will the event in Harrogate be seen by more than 400m people all over
Europe, a five minute film on the town and the beauty of the surrounding area
will be shown during the programme -- invaluable publicity for Harrogate as a
tourist centre.

The potential rewards for Harrogate are great, but the competition for the
conference and exhibition trade is intensifying in the UK and abroad.

Around £550m a year is spent on conferences in the UK and British companies now
spend 8 per cent of their marketing budgets on exhibitions. This is double the
proportion of five years ago and totals £200m.

Internationally, the centre is probably being launched into a buyer's market for
conference throwers in the mid-1980s as new centres come on to the market. In
France, for instance, the relatively new convention facilities in Monte Carlo
are about to be joined by an $80m complex at Cannes and another giant project is
planned for Nice.

For Councillor Ron Mather, chairman of the conference sub-committee of Harrogate
Council, there was little choice. "We had to do it. It would have been fatal
for the future of the district not to have built it -- the town would have gone
into decline."

For its money, Harrogate has got a splendid 2,000 seat auditorium, which can be
curtained off for 1,300 and 600 audiences, a new exhibition hall which doubles
as a banqueting hall for 1,000, a superstore with 40,000 sq ft of selling space,
an office block, restaurant and small shops plus the foundations for a new
hotel.

Conferences and exhibitions at present bring in an estimated £25m a year to the
town and it is believed that the new centre will lift this by 25 per cent this
year.

Next month, the international situation permitting, Mrs Thatcher will walk up
the spiral approach to the auditorium to deliver the keynote speech to the Young
Conservatives' Conference.

Harrogate is also negotiating with the Confederation of British Industry for its
1982 conference in November and the town hopes that the Liberal Party and the
Trades Union Congress will come next year.

There has however been a row locally over the delays in the project and rapid
rise in costs.

The original announcement that work was to begin on the centre said the
completion date "is expected towards the end of 1978." It was expected to cost
about £8m.

The path to its opening has not been smooth. Apart from the difficulties of
inflation, the council had to take over the project after the original private
developer was unable to proceed. Then in 1978 the decision was taken to upgrade
the plans to meet growing competition. Finally in Christmas 1980 the council
had to come to terms with the fact that the centre needed financing of £25m plus
agreement on a further possible £4m.

Mr Mather told councillors last month: "We can see daylight now at the end of
the tunnel. It has been a very long tunnel -- one of the longest I have
traversed." He also promised a council investigation into the rise in costs and
the extent to which this could have been anticipated.

The centre will produce an overall loss of around £5m this year with an
occupancy level which at the moment looks like being around 25 per cent. The
difficulty, now removed, was in trying to sell a centre that was not yet
completed.

Under the 14-year loan agreement with merchant bankers Morgan Grenfell, the cost
to the local ratepayers will reach a peak this year, be "minimal" in 12-15 years
and show a surplus after that.

The Harrogate Conference Centre has its origins in a report by PA consultants on
the future of the town.

Its conclusion was: "We consider provision of a new conference hall essential if
Harrogate is to maintain, or more importantly increase, its present position in
the market. Despite the risks it is an investment decision which in our opinion
the corporation must face up to as a matter of urgency."

The council, which is Conservative-controlled, did just that and, despite all
the difficulties, believes it took the right decision, for the conference and
exhibition trade in Harrogate has shown slow but steady growth over the past
decade.

In 1971 there were 410 conferences attracting 37,468 delegates. In 1980 the
number had grown to 559 conferences attracting 48,893, according to council
surveys.

Conferences vary greatly, of course, anything from the 2,000 delegate Institute
of Personnel Management conference and exhibition in October (Harrogate
regulars) to a 20 delegate conference held by Shell UK in a local hotel.

Direct earnings from conferences and exhibitions can be substantial -- Harrogate
exhibition halls are hired out at £800 a day and the new conference centre will
be hired out commercially at £1,000 a day, although conferences will pay only £1
a delegate. The greatest impact is the indirect boost given to the local
economy.

Around 6,000 jobs are directly dependent on tourism in the Harrogate district
and many other service jobs are tourism linked.

The vitality of the conference and exhibition trade has contributed to holding
the unemployment level in the Harrogate travel-to-work area to 8.1 per cent, 4
per cent below the national average and lower than its surrounding area.

Design and Construction

Principal firms involved in the project were:
Architects: Morgan Bentley Ferguson Cale
Mechanical and Electrical Engineers:
Ford, Higgins and Pole
Quantity Surveyors: Wilfred Sykes and Needham
Structural Engineers: Robert T. Horne Associates
General Contractors: John Laing Construction

LANGUAGE: ENGLISH

GRAPHIC: Symbol, HARROGATE CENTRE; Picture, The striking exterior of Harrogate's
new £28.5m conference complex

Copyright 1982 The Financial Times Limited

1235 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Hotels move into top gear for the conference age

BYLINE: REPORT BY RAY SNODDY

SECTION: SECTION I; Harrogate Conference Centre; Pg. 8

LENGTH: 596 words

YOU CAN still take the cure in Harrogate. It costs 10p to visit the Royal Pump
Room Museum and another 10p to descend to the original well-head and drink a
glass of sulphurous water "efficacious in curing rheumatism, gout, digestive
ailments and skin diseases."

But if the spa water is not so highly valued as once it was, the spa area has
left one important economic legacy which has helped the town to develop as a
conference and exhibition centre -- a range of good hotels.

There are five four star hotels clustered within walking distance of the new
conference centre and a total of 2,000 first class beds, with either private
shower or bath in the town. In the town and surrounding district there are
seven three star hotels, a total of 160 hotels, guest houses or farm houses
offering accommodation and more than 4,000 beds.

If the new centre attracts more conference trade will harrogate be able to cope?

There are already about 10 weeks a year when Harrogate is so busy -- for
instance during the International Toy Fair every January -- that the town bursts
at the seams.

Then some exhibitors have to stay as far away as Leeds, Bradford or York.

The success of the new centre could increase the number of times when Harrogate
has to put up the "full" sign at least in the short-term.

Plans are already underway, however, to increase the number of first class beds
in Harrogate and to improve the quality of existing hotels.

The foundations for a new modern hotel have already been constructed as part of
the conference project. Talks are at "an advanced stage" for the construction
of a 480-bed four star hotel on the site which would be directly linked with the
bar areas of the conference centre.

Mr John Abel, managing director of the George Hotel company, explained that his
company sold the four star St George Hotel in Harrogate in 1980 to provide
capital to invest in the new hotel project. The plan is to invest a total of
£12m in two stages to build a conference hotel and additional conference and
exhibition space.

Outline planning permission has already been granted for another 400 beds in the
town to be provided as they are needed.

In the meantime, the existing hotels of Harrogate are spending large sums on
upgrading, redecorating and refurbishing with the pulling power of the new
conference centre in mind.

The Granby, for instance, has spent £1m and the Hospitality Inn, facing the
Stray, the 200 acres of greenery which almost encircles the town, has spent
£900,000.

The largest hotel in town, the Majestic, has already spent £500,000 on its
public rooms and is upgrading its bedrooms in stages.

The Old Swan, where Agatha Christie stayed when she "disappeared" for three
weeks and where the film Agatha was shot, has spent more than £300,000.

Most of the large Harrogate hotels could not survive without the conference and
exhibition trade. Mr Frank Flaherty, general manager of the Majestic, says that
it accounts for more than half of his business.

The main problem at the moment is that there are sharp peaks and troughs.

Hoteliers hope that eventually the new conference centre will help to smooth out
the unprofitable troughs. Although they may also grumble at delays and cost and
increasing rates they are convinced of the long term merit of the investment.

Mr Flaherty, whose hotel grounds almost touch the new cente, commented: "In 25
years' time ti will be said that the council showed tremendous foresight and
wisdom to have built a major international centre."

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1236 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Tourists and delegates: a search for the right mix

BYLINE: REPORT BY RAY SNODDY

SECTION: SECTION I; Harrogate Conference Centre; Pg. 8

LENGTH: 421 words

THE CONFERENCE and exhibition trade has perhaps come to overshadow "ordinary"
tourism in the Harrogate area. That is where the major investment has been
made.

Those who come to exchange ideas or products, tend to stay in good hotels and to
spend more heavily than those who have come just to look or relax. They are
also prepared to come in almost any month of the year.

"Ordinary" tourism is still important to Harrogate and the qualities which
attract visitors make Harrogate a more interesting and pleasant conference
venue.

There are said to be more antique shops in Harrogate than anywhere in Britain
outside London, and the town delights in beating resorts like Cannes into second
place in international floral competitions.

Although the Royal Bath Assembly Rooms closed for therapeutic baths in 1967 the
Turkish Baths have been retained with sauna and solarium added. In the
restaurant a pianist still plays as people sip their morning coffee.

The main thing Harrogate lacks as a resort is the sea. The Tourist Information
Office, which answers 150,000 queries a year, regularly gets asked the way to
the beach. The answer is always "60 miles either east or west."

Harrogate's greatest tourist attraction is probably the fact that the Dales
start two and a half miles down the road and the town is used as a centre for
exploring such areas as Upper Nidderdale and Wharfedale.

Tourism in North Yorkshire has been given a new impetus by the veterinary novels
of James Herriot.

The town of Brawton in the novels is Harrogate and Herriot weekenders, before
being whisked off to Thirsk, in the hope of catching a rare glimpse of their
hero, are often treated to a Harrogate dinner at which the real live partner of
James Herriot, who recently retired as a vet, tells them of his life and times.

North of York another literary-television site of pilgrimage is beginning to
draw increasing attention -- Castle Howard where Brideshead Revisited was shot.

Mr Tony Miles, resort services director, believes that any lasting distinction
between conference visitors and tourists may be misleading. "The conference
delegate often comes back to the area as a tourist and brings his wife," he
says. On the second visit it is the small hotels, guest and farm houses which
benefit.

However, conference delegates and visitors may not mix all that well. One
tourist on a discount weekend was horrified to find his hotel full of people
earnestly trying to sell each other video equipment.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1237 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Investing in the future

SECTION: SECTION I; Harrogate Conference Centre; Pg. 9

LENGTH: 709 words

CONFERENCE CENTRE managers who have just taken possession of new conference
centres are very prone to claim, and go on claiming, that their building is not
only the best in the region but also in the country, Europe, the world.

Such claims can usually be only tested adequately by conference organisers
trying the place out and comparing the experience with the opposition.

Before its doors were open, professionals in the conference and exhibition field
were saying nice things about Harrogate.

Exhibition managers of the British Exhibition Venues Association, interrupted
during a meeting in Harrogate last month, were very flattering. Mr Ray Purnell,
chairman of the association, commented that the centre was "absolutely stunning.
You have to go to Europe to find anything like it. There is nothing to touch it
in Britain. It is the finest -- an investment in the future which is bound to
pay off."

Certainly the building is dramatic and with its six red brick towers supporting
its round superstructure it has an extraterrestrial air as if it had just
unexpectedly landed beside three-storey millstone grit Harrogate houses.

The visitor is swept up a broad cantilevered ramp through two and a half spirals
to the mouth of the auditorium. The ramp won the Concrete Society's award last
year before the building was finished.

It is surrounded by informal areas on several levels and a feeling of space
designed to allow delegates to "breathe" and conduct the face-to-face meetings
that help to make conferences a growth area despite the advance of both
recession and telecommunications.

Apart from commercial considerations, it was also deliberately decided to have a
large supermarket as part of the centre so that it would seem less a thing apart
from the life of the town. Morrisons, the Bradford-based supermarket company
has already opened in the store after spending £2m on fitting it out and hiring
a staff of more than 150. It has the use of 200 of the centres 400 car spaces
during the day.

"In a sense, Harrogate had greatness thrust upon it," Mr Joe Bentley of Morgan
Bentley the architects says. "We were aware that Birmingham, Brighton, Wembley
and Barbican were on their way . . ."

Europe was scoured for ideas. As a result, Harrogate is a member of a very
exclusive club -- the British Conference and Exhibition Centres Export Council.

A town or city must have a modern, purpose-built conference centre capable of
seating at least 2,000 people to join the group which combines to market their
facilities internationally. Until now, Harrogate has had the distinct
disadvantage of being merely an artist's impression on the brochures alongside
pictures of "living" conference centres at Wembley, Birmingham, Barbican and
Brighton.

The "Big 5" club, however, is likely to grow bigger. St. David's Hall, Cardiff,
is due to open in the autumn, and will also seat 2,000 in air-conditioned
comfort with closed circuit television and full arrangements for broadcasting.

Then Bournemouth is due to weigh in with a £16m centre.

The present "Big 5," although very different, are in a sense complementary.
Apart from Wembley and the Barbican, which share London, they are in different
areas of the country and conferences often like to move around from year to
year.

Although large conferences will use the new centre, Harogate's traditional
conference space will still be used -- perhaps for conferences that want to
break down into different sections. For the Baroque style there is the 1,300
seat Royal Hall, built in 1900 for £78,000 and denounced at the time as a "white
elephant." Then there are 700 seats in the Lounge Hall, 300 in the Crescent, and
400 in the Parliament and 500 in the Sun Pavilion, apart from private conference
venues in local hotels.

An important part of the centre complex is the additional 2,000 square metres of
exhibition space giving a total of 12,000 square metres in six halls which now
all form part of a linked complex.

It is an indication of the health of the exhibition market that last month they
were holding an exhibition about the exhibition business in Harrogate and that
all six halls are 90 per cent booked for the next two years.

LANGUAGE: ENGLISH

GRAPHIC: Picture, The new exhibition hall with overhead racks to carry services;
Symbol, HARROGATE CENTRE

Copyright 1982 The Financial Times Limited

1238 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Harnessing new technology

SECTION: SECTION I; Harrogate Conference Centre; Pg. 9

LENGTH: 409 words

FOR HARROGATE there have been some advantages from the delay in completion of
the centre. The technical equipment is the very latest -- particulary important
when technology is changing rapidly.

Some of the sound and lighting equipment was ordered as recently as 12 months
ago, with subsequent savings in cost, size and quality.

"We were building at the right time to harness all the new technology. There
may be increasing sophistication but not much fundamental change for the next
decade," Mr Joe Bentley of Morgan Bentley and Partners of Harrogate, the centre
architects, believes.

The centre was able to buy a closed circuit television system for £2,000 that
would have cost between £12,000 and £15,000 a few years earlier and the 160-way
light pallet memory control board which cost £14,000 would have been £100,000
four years ago.

There was also time to learn from the experiences of other new centres. At the
Wembley centre it was found that pop groups liked to do their sound mixing close
to the stage. So apart from being operated from the control rooms at the rear
of the Harrogate auditorium, the 24 channel sound mixing desk can also be used
at the centre of the hall.

Technically, the Harrogate auditorium is a compromise. Apart from conferences
and exhibitions it has to be capable of staging everything. The only notable
exception is opera or drama needing extensive scenery.

About 95 per cent of the centre's equipment is British made as a result of
council policy.

Other features are:

* An extension grid which extends over the whole platform which can be stepped
by three lifts which can travel from auditorium floor level to 2m above.

* A control level which sweeps round the auditorium and houses lighting, sound,
projection, interpreter booths, VIP viewing and broadcast control. The
interpreter booths have not been fitted with permanent equipment however -- this
will have to be hired.

* Sound systems designed to match or exceed broadcasting or recording studio
standards.

* A chairman's panel to select, and silence where necessary, floor speakers
which are routed through the mixer, and make use of loud-speakers in the
ceiling.

* Specially designed seats for the auditorium which are to be called the
"Harrogate Conference seat."

* A fire security system which links each room in the centre to a central alarm
panel visible to fire services from outside the building.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1239 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

In the world of super salesmen

SECTION: SECTION I; Harrogate Conference Centre; Pg. 9

LENGTH: 387 words

IN MAY, Mr Tony Miles, director of resort services for Harrogate, attended a
meeting of the "Big 5" conference centres, the group set up four years ago to
market jointly abroad the Barbican, Birmingham, Brighton, Harrogate and Wembley
conference centres.

Like serious poker players who are also friends, they sat around the table
together knowing that each (plus the Royal Albert Hall) was fighting to attract
the Eurovision Song Contest. But not a word was said on the subject.

It is an example of the curious mixture of co-operation and deadly rivalry
involved in pulling off the big prizes in the conference world.

Tony Miles struck early. When Bucks Fizz won last year's contest in Dublin,
giving Britain the right to stage this year's contest, he was on to the BBC
first thing on Monday morning.

"You have to move fast in the conference business, says Mr Miles, who has 30
years experience in the organising of municipal entertainments, conferences and
exhibitions.

When an inquiry is received in his office, he is on the phone that morning to
see when the inquirer can come to Harrogate with spouse to see the facilities
and surrounding area.

It is a difficult, ambiguous world for municipal conference directors. They
must be super salesmen prepared to spend money entertaining possible clients in
the best restaurants while at the same time being council employees having to
account for every penny to political masters.

"I was once attacked for going to the conference of the International Congress
and Convention Association in Vienna," he says.

But after explaining the value and necessity of such international contacts he
got a round of applause from the councillors. It is important, he believes, to
know his counterparts in West Berlin or South Korea.

Tony Miles started as an office boy in the Margate council offices and worked
his way up to entertainments manager, where he was in charge of his father who
ran the resorts deckchair service.

Since 1972 he has been at Harrogate first as deputy and then as resort services
director.

Tony Miles will now run everything from art galleries and museums to arranging
the venues for professional wrestling and performances of the Halle orchestra
from his new office in "one of the finest conference centres in Europe."

LANGUAGE: ENGLISH

GRAPHIC: Picture, Mr Tony Miles, resort services director: friendly rivalry.

Copyright 1982 The Financial Times Limited

1240 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

The man who changed the spa's image

SECTION: SECTION I; Harrogate Conference Centre; Pg. 9

LENGTH: 412 words

MR BILL BAXTER remembers Harrogate when the early morning streets were full of
carriages and landaus and the Royal Pump Rooms served 3,000 glasses of improving
water between 7 am and 9 am before high society returned to their hotels for
breakfast.

"Harrogate's century was the 19th, particularly after the railway came in 1847,
whereas Bath was fashionable in the 18th century," Mr Baxter says as if he had
been there then too.

"Between York races and the St Leger, all of Victorian Society came to take the
cure. If the Prime Minister had wanted to hold a Cabinet meeting it would
probably have had to have been in Harrogate."

Bill Baxter was Harrogate entertainments manager from 1945 until his retirement
in 1968 and saw the spa era pass away. He was involved in the change of
direction to conferences and exhibitions which saved the town from an otherwise
inevitable decline.

The depression of the 1930s, the disruption of war when the hotels were
commandeered as hospitals, and finally the advent of the National Health Service
killed off the spa business.

"Harrogate reorganised itself and we were the first in the conference field," Mr
Baxter says.

Not all the old hotels survived the transition. The Queens, for instance, is
now the headquarters of the Yorkshire Regional Health Authority.

Mr Baxter believes the new conference centre, built on what was once municipal
tennis courts where a Davis Cup match was played and Fred Perry gave
exhibitions, is a logical development.

"We had to do it. We started in conferences very early and we just had to keep
up with the competition," says Mr Baxter, who in his 78th year is still chairman
of Harrogate and District Hotels, Guest Houses and Restaurants Association.

He was involved in the British Advertising Convention held in Harrogate in 1925.
He believes it is indicative of the future that 1,000 advertising executives and
marketing directors will return to the town in September for their annual
conference in the new centre. The new international centre was apparently a key
reason for persuading the association to break with their tradition of holding
their annual conference in Brighton.

Mr Roger Underhill, director-general of the association, commenting on the
decision, said: "We felt it was time for changes. By holding the conference in
Harrogate we shall be closer to the industrial heart of the country where so
many of our advertising members are based."

LANGUAGE: ENGLISH

GRAPHIC: Picture, Mr Bill Baxter: first in the conference field.

Copyright 1982 The Financial Times Limited

1241 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

ITT learns the importance of national identity

BYLINE: Ian Hargreaves; EDITED BY CHRISTOPHER LORENZ

SECTION: SECTION I; The Management Page; Pg. 10

LENGTH: 1722 words

HIGHLIGHT: Ian Hargreaves, in concluding his analysis of the U.S. multinational,
highlights its European operations

NOTHING in ITT's vast 90-country empire has given the company such persistent
problems in the last five years as ITT Europe, the sprawling collection of
businesses whose almost $10bn in sales last year made it Europe's 14th largest
manufacturing company, just behind ICI.

But today, having shut down large parts of its food and electrical goods
operations, reorganised consumer electronics on a West German base and rethought
its European management structure, ITT is singing a more confident tune.

"I have a very good feeling about Europe," says Rand Araskog, ITT's chairman,
"Europe is a tremendous part of the personal fascination (of managing ITT) for
me. But I hope that will not lead to us keeping something we shouldn't keep."

This sounds like -- and indeed is -- a piece of cheerleading, because Araskog is
the first to admit that ITT still has some significant problems in Europe -- a
rocky Italian motor parts business and serious over-employment in Spain among
them. But it is cheerleading worth nothing from a company whose roots are in
the European telephone business, but which, on the way to becoming in the past
20 years the world's largest conglomerate, has sought most of its growth outside
Europe, causing many to doubt ITT's commitment to the continent. Today, just
under half of ITT's physical assets are in Europe and Europe provides about 55
per cent of the company's profits.

Closure

ITT can hardly be surprised if outsiders are confused about its intentions
towards Europe. In 1978-79, when Lyman Hamilton was briefly chief executive,
the plan seemed to be to close down Europe's consumer businesses, including
television, entirely.

Then Araskog came in, approved the closure of four TV plants in France, West
Germany and the UK and the modernisation of another plant in West Germany, which
is now part of Standard Elektrik Lorenz, ITT's West German telecommunications
subsidiary.

The plan has worked and SEL, despite high German labour costs, is now
sufficiently efficient in TV manufacture that the business is making money, even
though its market shares (12 per cent in West Germany, 2 per cent in Britain, 10
per cent in Spain) are still small. Television's turnaround is also the main
reason why ITT's consumer products group will this year make money for the first
time since the mid-1970s and at a time of very poor market conditions.

Television has thus been the most striking and concrete example of Araskog's
European strategy, which appears to have five elements:

1 -- Continue to sell peripheral businesses.

2 -- Place line responsibility for most European operations with the major ITT
telecommunications company in each country -- SEL in West Germany, STC in
Britain, STK in Norway. A corollary of that has been sharply to cut the
Brussels headquarters staff of ITT Europe, which has fallen by 15 per cent to
under 400 in the last three years.

3 -- In the major business, telecommunications equipment, create a more
democratic decision making structure to cut out wasteful rivalry within Europe
and between Europe and the U.S., where ITT needs all its European expertise to
crack a very difficult market. Within Europe, ITT expects its new system 12
switch to enable it to hold on to its very substantial share of the European
switch market.

4 -- Try to cross-fertilise between ITT's U.S.-based electronics businesses and
those in Europe, where ITT has great research strength, to create advanced
electronics products for the business market.

5 -- Tackle the problem of over-employment, which is most serious in Spain.

Under the first heading, says Jack Guilfoyle, president of ITT Europe, ITT has a
"small list," but nothing to compare with the dozen or so European companies
sold in 1979 and 1980 in the fodd, lighting and distribution areas. The more
obvious candidates for sale would be Nova, the belgian home electrical appliance
maker, and Leifheit, which makes kitchen gadgets. Both of these, says
Guilfoyle, are profitable and could be sold if anyone were prepared to offer a
good price.

The second element, management structure, shaped up in Araskog's mind back in
1976, when he noticed a common theme in the business plans he was reading from
the European companies. "They wrote that they were limited from this area and
that area, that they had to concentrate on public switching, that they couldn't
go into private communications and so on. It was in every plan," he recalls.

The rigidity of a management structure dominated by product line was also
preventing necessary flexibility in R and D and in the labour area was creating
conflicts for country managers, who had to deal with the political problems
caused by, say, a plant shutdown ordered by a product line manager in Brussels.

Today, in essence, SEL is running ITT Germany while STC, which Araskog also
decided partly to sell off in another move to strengthen its national character,
is running ITT Britain, BTM runs Belgium. STK runs Norway.

"All these companies are equal now to the size of ITT in total at the time that
Harold Geneen took over in 1959," says Araskog. "They are powerful
organisations and we are trying to treat them that way." The only big exceptions
to this thinking are in the pump group, where the best known member is Flygt of
Sweden, which is run from New York, and the motor component's group. This is
also run from New York, although its strongest operational element is Alfred
Teves, the West German brake company, which has in the last three years been
able to use its experience in European front wheel drive cars to seize from
scratch 30 per cent of the U.S. non-captive brake market.

The importance of creating a national rather than a multinational image in
Europe -- the European companies normally remit half their earnings to New York
-- is something which ITT has learned through bitter experience. Indeed, this
experience is continuing today as the company negotiates the nation alisation of
its remaining telecommunications business in France.

The third part of the strategy -- more broadly based decision making -- is a
necessary counterbalance to the fiefdom approach of the second. An example of
it would be the telecommunications council which meets regularly in Brussels and
which, in the presence of Araskog and a couple of other top New York executives,
thrashes out a worldwide policy on telecommunications.

Such forums, which Araskog says are for him the key think tanks of the
organisation, are also closely connected with element four. Cross-fertilisation
to develop a global communications industry strategy is perhaps the most
essential and difficult part of ITT's long-range planning. It means bringing
the products of ITT's newest major companies, Courier and Qume (which make video
display units and computer printers) into the European market, but even more
important pooling research ideas on the software development which ITT sees as
the key to the communications market of the future.

Item five is one of ITT's perennial frustrations. As the company moves to
electronic telecomm switches rather than electro-mechanical, it needs many fewer
people and facilities.

Surplus

In Britain, says Guilfoyle, STC has done well, although Europe-wide lay-offs
have cost ITT $150m in the last four years, part of a $350m global charge taken
for "technological restructuring." In Spain, however, ITT, like many others, has
had little success. Though the workforce is now 16,000, says Araskog, 3,000 are
surplus to requirements. "At the end of this decade we are going to have to be
down to 7,000."

"Ultimately it has to be a disaster for the company," which, because of Spain's
generous export credit financing, is one of ITT's most important export bases,
in common with the companies in Belgium, Britain and Norway.

This pragmatic blend of concern for the corporate bottom line, desire to appear
above all a good national citizen and struggle to produce global strategies
where necessary, is probably what ITT needs in the 1980s, but it does not alter
the fact that the European landscape continues to look hilly.

Nationalism in telecommunications and political vagaries in the flow of capital
to the telephone authorities will continue to create unease in ITT's switch
business and at the broader, EEC level, ITT feels it could still have some
problems from things like the tougher proposals on reporting requirements.

Politically, the election of President Mitterand came as a shock -- Rand
Araskog, for all his company's experience in Europe, is an uncompromising backer
of Reagan economics, and has even proposed drafting a bill of rights for free
enterprise in case a leftishly inclined Administration ever took over in the
U.S.

The loss of ITT France will certainly be a blow, even if ITT, at it hopes,
persuades the Franch to continue manufacturing System 12 within the nationalised
company.

Even in the consumer products business, so recently pulled from the fire,
problems lie ahead. Outside of TV, ITT is selling at the more expensive end of
its product range (audio and home computers) Japanese and German-made goods
stamped with an ITT logo -- a notoriously unprofitable and insecure way to do
business, although something ITT says it needs to do to round out its TV product
offerings to dealers.

It is significant though, that ITT is choosing to stamp the ITT logo on its
audio equipment. The reason, says Guilfoyle, is that the company's market
research shows the name ITT in Europe is associated with quality and high
technology.

At one time, ITT was cautious about using its name in Europe -- a product of
sensitivity towards nationalism and, perhaps to do with the blackening of the
company's image during the political scandals of the early 1970s.

Apart from the recent conviction of four ITT Austria executives on bribery
charges, in a case dating back to 1975, Araskog is confident he and his
specially appointed "corporate policy compliance officer" have flushed out any
problems of that kind.

It is a sign of the times that outside Austria, this story attracted very little
attention. The times, like ITT, have changed.

Two previous articles on ITT appeared this week on Tuesday, page 12, and
Wednesday, page 9.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1242 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

EAST OF EDEN

BYLINE: Bertie Ramsbottom; EDITED BY CHRISTOPHER LORENZ

SECTION: SECTION I; The Management Page; Boardroom Ballads; Pg. 10

LENGTH: 267 words

From London to Bonn and Chicago,
In Zurich, Toronto and Nice;
Every island and archipelago
From Chile, to Holland and Greece;
Wherever executive people
Slump wearily into their chairs
In the hope that the counting of sheep'll
Do something to lessen their cares;
Wherever the harassed director
Turns to sleep for relief when he can;
They awake to the frightening spectre --
Of inscrutable men from Japan.

Beleaguered in Basle and Benghazi,
The most robust of corporate men,
Quake at the vast kamikaze
Hordes of the murderous yen;
The ubiquitous bland oriental,
No higher to most than their knee,
Turns giants of industry mental
To an unprecedented degree.
And the threat of the little invaders
Brings a strong, paradoxical urge
For yesterday's eager free-traders
To demand an embargo -- or merge.

But it's not just the fact that we're losing
The markets that's causing the fuss;
It's these damned funny methods they're using
Which they've clearly not borrowed from us!
Did you ever hear of employers
Giving life-time employment and such?
They're just doing these things to decoy us,
But the board wouldn't care for it much!

And as for the dubious morals
Of having a National Plan,
With a MITI to sort out the quarrels --
Let's just muddle along as we can!
And a Japanese banker refuses
To behave as he should, we have heard,
By putting the money to uses
Our fellows regard as absurd.

In Bradford, Detroit and Lusaka
There are puzzled executives who
Pray that they'll learn in Osaka,
To do it the way that we do.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1243 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Darling Lili;
Lili Marleen (AA) Prince Charles
Light Years Away (AA) Camden Plaza
Taxi Zum Klo Screen on the Hill, ICA
So Fine (AA) Warner West End and elsewhere

BYLINE: by NIGEL ANDREWS

SECTION: SECTION I; The Arts; Cinema; Pg. 11

LENGTH: 1210 words

In Lili Marleen Rainer Werner Fassbinder, perhaps the cinema's greatest
image-maker since Visconti, has built a sturm und drang romantic melodrama
around the famous wartime song that hopped between frontiers during World War 2.
Since the movie's Berlin opening last spring. European critics reared on the
ancient untruth that cinema is a nurseling of our literary heritage -- the novel
and the play -- have swooped in wrath upon the screenplay, cowritten by
Fassbinder, Manfred Purzer and Joshua Sinclair, decrying its wayward dialogue,
its "ambivalent" attitude to the Third Reich (to wit, it doesn't offer another
glibly redundant fulmination against A. Hitler and Co.) and its wacky narrative
shutlings betwene Hitchcockian suspense and doomed romanitcism.

Bu ignore the brickbats. The greatness of Lili Marleen lies in its quality as a
giant kinetic painting. The movie-image is the message, as Fassbinder charts
the career of his heroine "Willy," played by Hanna Schygulla, the film's
slinky-vamp approximation to real 1940s Teutonic songstress Lale Andersen who
powered "Lili Marleen" to fame in war-torn Germany. (And later watched its
sultry-lilting cadenzas move Westward to be taken over by Marlene Dietrich
husky-throating it for the Allies).

Schygulla plays the rags-to-Reichstag warbler as a rosecheeked siren whose
climb-to-fame and later fall-from-grace follows the parabola of Germany itself.
Plying her bittersweet song, Willy soars to the heights of Fuhrer-favouritism,
showered with furs and flowers and a sumptuous villa, and then watches her
career slowly unravel thanks to an incautious romance with a Jewish composer
(Giancarlo Giannini), the son of a Swiss-based anti-Nazi (Mel Ferrer) who is
trafficking Jewish refugees across the German-Swiss border.

The film wraps this simple tale of love and country, worldly kudos and soul's
corrosion, in a glorious explosion of line, colour and movie expressionism. In
a pale early spectrum of golds and pinks and greys, only the blood-red of the
ubiquitous swastika-flag stands out. But then slowly Fassbinder allows the
colour to spread -- into Schygulla's lips and sweater, into scarlet flowers
strewn in the foreground of smoky cabarets or aplatial Nazi offices. At the
movie's close the colour cycle comes full circle. The garish hues drain away as
Schygulla's career is broken on the wheel of Nazi tyranny, itself showing the
first cracks of decay.

Other figurations of Fate lom forth in this richly-coded Gotterdamerung. In the
film's early chapters, the light of table-lamps and street-lamps is deliberately
lens-diffused into cross-shapes so that a frontier meeting between Schygulla and
Ciannini, forested with streetlights, becomes an eerie-luminous Calvary. But
later Fassbinder's light-diffusions become five-pointed and diagonal, changed to
a stellar emblems for our heroine's sudden eclat into stardom.

These signpost symbols for the mind's eye are only part of Lili Marleen's
expressive splendour. Fassbinder makes every setting not just tell a story but
virtually forge a myth: from the very splendour of the Art-Deco Reichstheatre
where Willy gives her pinnacle-of-fame performances to the rain-sleeked streets
where raincoated resistance fighters scurry between the shadows. And if the
panopoly of lush tracking-shots, making Lili Marleen a spider's web of arabesque
and sinuous motive, pay homage to -Fass binder's directorial idols Sirk and
Ophuls, there is also in the film the steely mischief and eyeblink apocalypse of
Hitchcock. A scene of suddenawakening reunion between Schygulla and Giannini
(he understands her motives at last, she his) mimics -- even to its studio-built
grass-knoll, bluerinse twilight and sudden balletic turnings of the head -- the
hilltop scene between Paul Newman and Julie Andrews in Torn Curtain.

Lili Marleen confronts an evil society by daring to look it in the eye and gaze
on its gaudy, once-ampant charms. If the film's Nazi knees-ups seem perilously
close at time to Mel Brooks, it's because we dare not think of the totemic
villains of yesteryear -- dummy-comforters for us in today's moral jungle --
actually enjoying themselves. Like Mephisto, Lili Marleen shows us the
human-all-too-human face of Nazism. But unlike Mephisto, a roundelay of
hindsight outrage coaxed not always persuasively from the pages of its original
novel, Lili Marleen is a film through-and-through; born from the medium and
alive with its wonders.

Light Years Away, by contrast, is merely fidgety with enigma. Swiss director
Alain Tanner -- of The Salamander and Jonas -- has taken British thespians
Trevor Howard and Mick Ford to remotest rural Ireland to shoot a fable about a
boy who mysteriously apprentices himself to a prophetic old codger. The codger
is Howard, he lives in a car-dump and he is building, it eventuates, wings
wherewith to fly.

Celtic twilights are on round-the-clock service in Tanner's pastoral -
primordial Never - never-land. They limn an ageless backcloth to the derelict
cars stacked-up like old beetleshards, the broken-down cottage in which Howard
lives, the solitary rusty petrol-pump that Ford manfully mans. Occasionally the
youngster is fed by the oldster, who hails froth with a chicken sandwich and a
runic cry, lending his craggy, fissured face to much delphic dialogue and
pregnant-pausing.

The film is a portentous parable of faith and discipleship that has little life
or substance beneath the Celtic cloak of primeval opacity. John Boorman or Ken
Russell, going all out for delirium and disequilibrium, might have fashioned a
demonic folie de grandeur. But windblown romanticism shot through with the Swiss
prosy-precision of Tanner's style -- compositions as flat and four-square as
giant postcards -- produces a cinematic curate's egg and an addled one at that.

All hail to the knockabout candours of Frank Ripploh's Taxi Zum Klo (lit trans
Taxi to the Loo): a bristling, funny slice of sexual auto-biopic by a homosexual
Berlin ex-teacher who has suddenly, on this movie's sole strength, catapulted to
fame on the film festival circuit.

As I reported from Cannes it's a charabanc, or more accurately share-a-bang,
tour of German gay life, with Ripploh himself as the hero, a bearded Don Quixote
tilting at the windmills of anti-gay prejudice and gay conventionality. An
inveterate "cruiser," he tussles with the monogamous domesticity of his lover
(played by Ripploh's real-life consort Bernd Broaderup), tangles with the
expected quota of amorous diseases, and tiffs with school officials who draw the
line at teachers coming to class en travestie. Taxi Zum Klo is a cheerfully
ramshackle packagetour of how-the-other-half-pleasures-itself and a lively blast
for psycho-sexual sanity.

The only blast needed in Andrew Bergman's slapstick shipwreck So Fine is an
early-warning siren encouraging filmgoers to avoid the cinema. Ryan O'Neal is
the university professor who splits his trousers, patents see-through jeans and
thereby saves his father Jack Warden's ailing clothing business. As a
trousers-and-pratfall comedy, it makes Brian Rix seem like Ben Jonson.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Hanna Schygulla in Lili Marleen

Copyright 1982 The Financial Times Limited

1244 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Young Vic;
John Mortimer's Casebook

BYLINE: by MICHAEL COVENEY

SECTION: SECTION I; The Arts; Pg. 11

LENGTH: 386 words

John Mortimer rests his case in the form of three short plays wrapped up in the
device of a prison concert party, an exploitation of the audience participation
(or alienation) technique only marginally less embarrassing than that practised
by John Osborne in A Sense of Detachment. He gets away with it, just, on the
grounds of his ingratiating charm as a deft stylist of dialogue.

The most substantial piece is The Dock Brief written in the year of Osborne
(1956) and first performed in the year of Pinter (1958). An ageing barrister,
Morganhall, has at last and by accident obtained a defence client, the hapless
wifemurderer Fowle. These two studies in failure are put through a series of
role-playing charades in the shadow of the hangman, only for the case to be
dismissed because of the barrister's incompetence.

Admittedly, the charm of the play is now bordering on the quaint, but it is a
real joy to see Nigel Hawthorne and John Alderton playing it for all it is
worth, wringing true laughter and some pathos from their partnership in crime.
On learning of Fowle's reprieve, Hawthorne reels backwards in a state of
comically cataclysmic disbelief, gently patting Mr Alderton on the arm for his
no doubt tactfully intended appreciation of dumb courtroom tactics. And
Alderton's Welsh, bespectacled criminal discovers his true vocation as he warms
to the task of impersonating his adversaries, the judge and the jury.

The Prince of Darkness was part of the Heaven and Hell double bill at Greenwich
three years ago, later unsuccessfully extended for West End consumption. I am
not sure that the gay vicar jokes are either funny or even usefully topical, but
the central notion of religion with no place for sin is given a neatly atheistic
beating. Alderton is the rector heavily committed to the interdenominational
gay front, Isabella Knight his perversely asexual wife and Hawthorne the demonic
curate with a miraculous touch.

It is all cleverly directed by Denise Coffey and simply designed on a sloping
thrust stage by Bernard Culshaw. The new curtain-raiser, Interlude, sets a
breezily absurdist tone for this "look at the caring professions" with Alderton
and Hawthorne spiritedly enacting a medical examination in the form of a
nightmarish pantomime.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1245 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Ica;
Slips

BYLINE: by ROSALIND CARNE

SECTION: SECTION I; The Arts; Pg. 11

LENGTH: 367 words

Lumiere and Son's latest creation is a bizarre and wonderful compilation of
images out of fairy tale, myth and individual trauma. This is by no means all,
and the company could be accused of incoherence were it not for the crisp
discipline of their presentation. Writer David Gale and director Hilary
Westlake will no doubt have a key to the labyrinth. But an overriding virtue of
the piece is that it never quite explains itself. Almost frustrating, it is
also intriguing. Humour arises at unlikely moments and there is nothing
predictable here.

Students from the Wimbledon School of Art designed and made costumes and set,
and their work is staggeringly good -- comic, satiric, plush and fanciful.
Composer Frank Millward has written a most evocative score, notable for its
choric booms, electronic twangs and hurdy gurdy.

So much for praise; description proves a greater problem. A young woman in
white meets the Queen, wins a free ticket to Latin America, and there she stays.
Switch to dream sequence of exaggerated Victoriana. Tightly corseted women and
starchy men knit mufflers with porcupine quills, and talk about steam ships,
evolution and physiognomy in the clipped Latinate language of a constipated 19th
century novel. They send their child, a doll, out into the world on a penny
farthing bicycle upholstered in red velvet with curtain tassels.

Like Pinocchio, Dolly wants to be real. She meets a witch who turns into a posh
lady, a bit like the Queen. Satyrs pursue her and expose her sexual nullity.
She carries a lion on her back till he drops dead, but his magic ruby turns her
into a real girl. After an encounter with a snow king, she drifts on to Toyland
where she sells stolen lemonade and is courted by an extremely jerky policeman.

Back in Latin America, snatches of the Dream return around Dolly/Mary's
Christmas tree. Four friends arrive, nostalgic for England and open their
disappointing presents: but Mary suffers the worst trick of all. The ending is
a horribly familiar nightmare to the average paranoid. Despite some
reservations about excessive esotericism and incoherence in part two, this is
performance art of a high standard.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1246 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Festival Hall;
The Nutcracker

BYLINE: CLEMENT CRISP

SECTION: SECTION I; The Arts; Pg. 11

LENGTH: 247 words

Before the Christmas decorations finally came down on Twelfth Night, I felt
impelled to look at that ancient bauble, The Nutcracker, as it hung at Waterloo.
Nothing festive about its setting amid the glum and ill-lit concrete pedestrian
areas that surround that cluster of dungeons we call the South Bank, but
attractive performances from two Roman recruits to Festival Ballet, Renata
Calderini and Maurizio Bellezza, last night.

The production itself looks more and more care-worn, and some of the
performances that bang about the party scene in the first act have strayed from
Mr Vincent Crummles's troupe, not least the over-size and overactive Fritz of
Jean Louis Cabane, yet Miss Calderini and Mr Bellezza play their roles with such
charm and innocence that we can still believe in the Hoffmannesque intrigue.
Their dancing -- in the short scene before the snowflakes descend, and in the
final grand pas de deux -- is appealing, but seems immature and insecure when
big technical guns are needed.

Miss Calderini, though, has an adorable way with her dances; she is a beautiful
girl with a beautiful smile, and she presents the Sugar Plum variation with
sweetest grace and the prettiest airs.

Both artists look very young -- a great advantage for these roles -- and they
engage our sympathies; their style is attractive, unfussed; what is now needed
is that technical encouragement which will not take the bloom of youthful grace
from their dancing.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1247 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Milan Opera - 2;
Vanitas and Variete

BYLINE: by MAX LOPPERT

SECTION: SECTION I; The Arts; Pg. 11

LENGTH: 704 words

From the recent repertoires of the major continental opera houses, an obvious
lesson is to be drawn: those with large state or civic subsidies can afford to
range more widely and audaciously than those without. La Scala (though its
annual monies always arrive in come tantalising degree of tardiness and
confusion) is, at least by Covent Garden standards, handsomely subsidised; and
its cartelloni of recent seasons prove the point.

Premieres by Nono, Berio, and Stockhausen have been notable (and duly reported
on this page); in the opening month of the current season, a smaller but no less
pertinent example of Scala thinking came at the Piccola Scala, which staged a
fascinating double bill of contemporary music theatre, of a kind none of our own
opera houses could dare to contemplate at present -- a world premiere by the
Sicilian composer Salvatore Sciarrino (b 1947), and the Scala salute to mark the
50th birthday of Mauricio Kagel. At a performance in the middle of the run,
played to a large and happily attentive audience, it appeared that the wages of
adventurousness do not always have to be box-office death.

The first half was Sciarrino's Vanitas; and, at almost an hour's duration, it
proved too long and too unvaried in its slow pace; but for much of the way I
found the experience a compelling one. A self-declared nature morte in
music-theatre form, it charges itself with unfolding a series of images at once
visual, theatrical, and musical, images properly belonging to the world of
surrealism, and therefore to the half-world of dreams given tangible expression.

A piano is inserted bodily into the front of the stage platform, its closed lid
level with the stage floor, the orchestra pit entirely sealed. Pianist and
cellist (seated above on the stage itself) sit in near-darkness, light falling
on their hands only, their business the tracery of frail motivic fragments, much
repeated and oddly memorable in their etiolated lyricism; while a singer
uttering near-inaudible literary fragments in various languages) and a company
of mimes enact the strikingly fluid tableaux that well up out of darkness -- a
moonlit window, a rose and its vase, a large descending clock, a doll gradually
broken up, and so on.

In summary description it all sonds the very stuff of Pseud's Corner; and the
dependence, as in so much avant-garde art, on the individual willingness of an
audience-member to explore the private parts of the creator's psyche following
only hints rathe than clear signposts, is ever a risky request. Yet for most of
the course the feeling in the Piccala Scala audience was of patience, and often
absorption, not inattention (something an Italian audience advertises with much
less reluctance than those of northern countries). Certainly it seemed to me
the product of a hyperrefined, if inevitably rather limited, creative
imagination, curiously vivid in its visions the delicate in their capture. The
exquisite production and decors were by Pier'Alli; the players, musicians and
mimes alike, deserve the tribute of not being named individually.

Oominic Gill wrote here at length about tagel after the London Sinfonietta
birthday concert last month. As put on by the Scala, Variete (1976-77) was a
more luxurious tribute -- a delight, and, on several levels, something more.
While the eight-man band (including accordian) sounds from the pit Kagel's
bittersweet score, a compound of Satie, Stravinsky, candy floss, and some of the
ripest theatre-band cliches in the book, a circus troupe and a magician with his
equipe go through their paces.

Literally, we watched in enthralled succession clowns, snake-charmers, trapeze
artists, and a mago (Silvan) who exerted, beyond the pleasures of his
death-defying routines, a peculiarly sinister command over state company and
audience alike. What is this concert-spectacle "about"? Nothing and many things
simultaneously: a bouquet of simple thrills simply presented; an image of
popular theatre caught and distilled through the glass of a rare and particular
theatrical mind; a huge joke played out in public, which yet left behind the
strangest after-glow of private melancholy.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1248 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Elizabeth Hall;
Brahms

BYLINE: by ANDREW CLEMENTS

SECTION: SECTION I; The Arts; Pg. 11

LENGTH: 242 words

With a programme of Russian song by Elena Obratsova at the Wigmore Hall last
night cancelled without notice or explanation, a dash over to the South Bank
brought another change of artist. An all-Argentinian line-up for an evening of
Brahms whould have included the mezzo-soprano Margarita Zimmermann; she was
indisposed, and her place was taken by Linda Finnie. Miss Zimmermann's talents
-- she has been a captivating Covent Garden Cherubino in recent times -- might
have given this recital some sparkle; it proved a worthy, unsmiling affair,
demonstrating that programmes which look balanced on paper sometimes turn out
rather differently.

Miss Finnie's partners were the violist Tomas Tichauer and the pianist Alberto
Portugheis, and the core of the concert was their accounts of Brahms' two viola
sonatas. The performances, uncertain of tempo and occasionally of intonation,
might have been designed to show that the works present themselves best in the
original clarinet versions, never achieved a convincing parity, and passagework
thrown off easily on the wind instrument became a distracting hurdle on the
viola; there were especial problems, when the solo line was low lying. Mr
Portugheis' subdued, sometimes underpowered playing had not helped Miss Finnie's
sombre, rather monochrome presentation of the Four Serious Songs Op. 121, and
she gave a better impression of herself in the two songs Op. 91 with viola
obbligato.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1249 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

The Spanish conundrum

SECTION: SECTION I; Editorial Comment; Pg. 12

LENGTH: 686 words

BRITAIN and Spain today make yet another attempt at removing one of the
absurdities of Western Europe, the locked iron gates barring the narrow strip of
land between Gibraltar and the Spanish mainland.

It is Spain that has kept them locked since 1969 in support of its claim that
Gibraltar, ceded to Britain in 1704, should once more be Spanish. If Sr
Leopoldo Calvo Sotelo, the Spanish Prime Minister, in his talks with Mrs
Margaret Thatcher at Downing Street, agrees to re-open the gates, he will be
hoping for compensation in two very different fields: some British concessions
on Gibraltar, where he is under strong pressure from his own unruly
nationalists; and British backing in the bogged down talks for Spanish
membership of the EEC.

Democracy

As long ago as last April Britain agreed that, once the gates are open, it was
ready to discuss all aspects of the future of Gibraltar. Implicitly that
includes the future status of the Rock. But Britain has given a firm
undertaking not to change that status against the wishes of Gibraltarians That
is an undertaking Britain is in honour bound to obey.

Spain could help its own standing among Gibarltarians by restoring contact with
the Rock and by demonstrating that its young democracy has the stamina to
survive the repeated challenges from admirers of General Franco.

Sr Calvo Sotelo has been discussing the prospects of his application for
membership in the EEC in Brussels this week, and will do so again with Mrs
Thatcher. He hopes for a more sympathetic ear than he might get in Paris, Rome
or Athens where the competition of Spanish fruit, wine, early vegetables and,
above all, olive oil is feared.

Obligation

General lip service has been rendered to the idea that Spain should become a
member on January 1, 1984. But no progress of any substance has been made. The
Ten are sufficiently disagreed about how to tackle their existing problems
without wishing to add those raised by Spanish membership.

France has let it be known that the current argument about how to restructure
the Community budget and about possible reform of the Common Agricultural Policy
must be resolved at least in outline before progress can be made with Spain.
That recognises the practical difficulties in the way of what in purely
political terms is desirable.

The Ten are under some obligation to involve Madrid in their discussions. It
would be useful to ensure that Spain is promptly informed about the progress the
Community is making with its internal problems. The Community should, wherever
appropriate, take account of the Spanish point of view.

Spain, too, has been obdurate during the initial sparring. The discrpenacy
between high Spanish and lower EEC tariffs is sufficient to have reduced the
value of the existing preferential trade agreement. The Spanish negotiators
have shown little willingness to recognise that; nor have they given ground to
Community demands that, from the day of accession, administrative and tax
barriers to EEC industrial goods must disappear.

Within Spain itself the business establishment has been having second thoughts
about the EEC.Initial enthusiasm has given way to a more protectionist view. It
is the democratic parties that are pushing hardest for membership, hoping
thereby to improve the standing of democracy among the Spanish people.

Problems

It is here that the cases converge for trying to accommodate Spain as far as
reasonable over both Gibraltar and the EEC. The Ten do have an interest in
strengthening Spanish democracy. A similar case was made out for Greek
membership.

But there is no denying that the Community is in particularly poor condition to
digest a new member. Greece, admittedly more volatile and less developed than
Spain, has proved awkward enough.

If the Community is not to be drawn into an unending succession of problems
requiring first aid, it must make a firm effort to put its own house in order.
Only a firmly based Community will be in a position to cope with the manifold
problems of enlargement.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1250 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

THREE WAYS TO TAX COMPANIES

BYLINE: By Barry Riley and David Freud

SECTION: SECTION I; Corporation Tax; Pg. 12

LENGTH: 151 words

Classical systems: Companies pay tax at a fixed rate on their taxable profits,
whether distributed or not. Shareholders are taxed separately on the dividend,
so shareholders are effectively taxed twice. The U.S. and the Netherlands have
this system.

Partial imputation system: Companies pay tax at a fixed rate on all taxable
profits, whether distributed or not. When a company pays a dividend, a tax
credit is available to the shareholder, in practice at a rate below that of
corporation tax. France, the UK, Canada and Italy use this system. In the UK
and France the shareholders' liability is settled by the company through Advance
Corporation Tax or precompte.

Full imputation system (two-rate): Applied in West Germany, where the tax rate
on retained profits is 56 per cent and on distributed profits 36 per cent, with
an additional withholding tax of 25 per cent of dividends.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1251 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

The £4.5bn patchwork

BYLINE: By Barry Riley and David Freud

SECTION: SECTION I; Corporation Tax; Pg. 12

LENGTH: 1814 words

THE AVERAGE British finance director will be scouring yesterday's Green Paper on
corporation tax for some signs that relief of at least part of his company's tax
burden is in sight. He is going to be disappointed.

The 154-page document is neutral not only in its analysis but it is also
designed entirely on a so-called revenue neutral basis. That is, the Government
may be willing to shift the impact of tax to some extent, but is not prepared to
see any reduction in the overall corporation tax take, at present some £4.5bn.

The last comprehensive reform of the company tax system was less than a decade
ago. Yet the criticisms have been so widespread and the shortcomings so
self-evident, that the Government has felt it necessary to go back to scratch.
Yesterday's Green Paper on corporation tax examines every conceivable option
afresh.

There are a number of reasons why companies are dissatisfied with the present
system.
* It does not allow in any consistent sense for inflation. In particular,
financial companies find themselves being taxed on illusory profits.
* Allowances against taxation are generous, but often cannot be used. The
current overhang of tax losses is £30bn and is rising at the rate of $5bn a
year.
* The system promotes artificial schemes to avoid tax, especially through
leasing, which is used as a means to transfer investment incentives.
* Widespread "tax exhaustion" means that the system is not working as it was
designed. In particular, the payment of dividends often incurs a tax penalty.

In the last decade there have been at least two periods in which untenable tax
demands from the Government have threatened to create serious financial problems
-- and each time the Government of the day had to hurry through ad hoc
legislation to avert the blow.

It was only as recently as 1965 that a separate corporation tax was introduced
in the UK. Until then income tax was charged on the earnings of companies and
unincorporated businesses alike, although there was a separate "profits tax"
introduced in 1937, originally to finance rearmament.

The Labour government's 1965 legislation set up corporation tax on the basis of
the classical system (see box). This was heavily criticised because of its
inherent bias against paying dividends. It became tax efficient to reinvest
funds in a company even though there were better investment opportunities
outside. It also encouraged excessive borrowing rather than equity funding,
because of the tax relief on interest paid.

In 1973, the Conservatives introduced the present partial imputation system.
Under this dividends carry a tax credit available to individual shareholders.
The amount of double taxation of company profits was considerably reduced.
There were big adjustments in the capital markets as the relative attraction of
equity finance grew and as it became cheaper to pay dividends.

Complaints from companies have built up, however, since 1973 over the way in
which the system has made UK earnings more attractive than overseas earnings --
because foreign taxes cannot be offset against Advance Corporation Tax. There
have been several instances of companies with high overseas earnings taking over
UK concerns simply for this tax reason.

But these criticisms pale into insignificance against the ravages caused by
inflation. It is all very well to tax nominal historic cost profits at a 52 per
cent rate in a non-inflationary climate. When inflation is running at between
10 and 30 per cent, much of the historic cost profit is illusory.

Over the years the authorities have reacted to this problem by making a series
of ad hoc adjustments to reduce tax bills. And in the process they have shifted
the tax base far from reported pre-tax profits.

The two most important adjustments have been capital allowances and stock
relief.

Notionally capital allowances are intended as an incentive for capital
investment. Any concern which spends money on a piece of capital equipment can
set the full amount against its income for tax purposes, even though the
depreciation for a single year charged in the commercial accounts would be only
a fraction.

In practice, the availability of 100 per cent first-year capital allowances has
been used not just as an investment incentive but also as a rough-and-ready
adjustment for inflation. When prices are rising, historical cost depreciation
is inadequate to finance the replacement of assets.

The second adjuster, stock relief, has had a far less easy ride. It was
announced in something near panic in 1974, when the company sector was going
through a liquidity crisis and was facing huge tax bills on inflationary stock
profits.

The "temporary" stock relief allowed companies to subtract from their taxable
profits the bulk of the difference between opening and closing stocks in a year.

This system was a key reason for the dramatic drop in tax paid by companies
through the latter part of the 1970s. It was open to considerable abuse, since
companies could manipulate their stock levels to reduce their tax bills.

The recession brought to light another shortcoming of the system. In the last
couple of years companies have been forced to implement heavy cuts in their
levels of stocks. This threatened to bring into effect huge tax demands through
"clawback" of the relief already given, and a year ago the Government had to
hurry through a reform to prevent industry from ruinous tax demands.

So what we have now is a patched-up corporation tax system. If the Inland
Revenue wanted to change over to a coherent system which allowed proper
adjustments for inflation the only one readily available would be current cost
accounting, already embodied in the accounting standard SSAP 16. A large part
of the Green Paper is devoted to an analysis of the strangths and weaknesses of
CCA.

Some of the Inland Revenue's objections to CCA are already well known. The
consultative document on stock relief published in November 1980 made it clear
that the SSAP 16 cost of sales adjustment would not be a practical basis for tax
relief, because of the wide variety of price indices used. "It would introduce
an unacceptable degree of subjectivity into the calculation of tax," said the
Revenue at that time.

The present Green Paper is more thorough and less dismissive, but it is almost
as discouraging to those in the accountancy profession who would like to see CCA
given a more central role in tax assessment.

This Green Paper deals not only with stock relief -- or the cost of sales
adjustment in CCA terms -- but examines two further subjects, the CCA
depreciation charge and the whole question of monetary items such as trade
debtors and creditors, and bank deposits or loans.

The adoption of a CCA depreciation charge would, as with the cost of sales
adjustment, raise the problem of multiple indices and subjective judgments which
the tax men find hard to handle. Whatever the distortions caused by the present
system of 100 per cent capital allowances, it has at least made life gloriously
simple.

However, other countries have special rules for depreciation allowable for tax
purposes, and the Revenue would be able to lay down schedules of asset lives for
various categories of assets.

Much more fundamental issues are posed by the two-tier monetary provisions of
SSAP 16 -- the monetary working capital adjustment which is designed to allow
for the impact of changing prices on the level of working capital, and the
overall gearing adjustment which is designed to allow for the effect of
inflation on the real value of borrowings.

For many years the Treasury and the Revenue were strongly opposed to any
question of the indexing of accounts to allow for general inflation. In the
early 1970s the accountancy profession was prevailed on to withdraw its
so-called current purchasing power system of inflation accounting. Then in 1975
the Sandilands Committee promoted a system of current cost accounting which used
specific rather than general indices and did not deal with the impact of
inflation on monetary items at all.

Subsequently the accountancy profession decided that any system which ignored
monetary items would be a non-sense, and the Inland Revenue does not appear to
dispute this view.

However, the Revenue now raises the objection that to introduce indexation of
monetary items in the business sector would be inequitable when similar relief
was not available to persons. This could produce practical problems at the
margin, where self-employed persons may have the choice of trading either as
incorporated or unincorporated businesses.

So a relief of company tax burdens is not in sight here, nor on the question of
ACT payable on dividend.

As for the overhang of tax losses, far from companies being offered a way of
realising these, they are threatened with an extension of the six year cutoff
applied last year to stock relief.

In 1979 Sir Geoffrey Howe, the Chancellor, said that it was important that the
tax system should reflect the effects of inflation in a way that was "reasonably
objective," equitable and simpler to administer." But the new Green Paper is
deliberately neutral in tone and does not attempt to set out any very clear path
to a more rational system.

The Chancellor made it clear yesterday that the Government would not wish to
make major tax changes unless full consultation led to a clear consensus in
favour of the change. But the Green Paper is at its most lucid in indicating
how the different systems would shift the burden of taxation to different
sectors, so a united front may prove difficult to form.

Certainly the Government has no intention of changing from the present
imputation system. Such a change "would require the most compelling arguments"
says the Green Paper, adding: "The Government has seen no such arguments put
forward."

The conclusion must be that if industry and commerce want significant changes
either to obtain ACT relief or to allow more accurately for inflation they will
have to lobby very aggressively during the period up to September, by which time
comments are requested.
EFFECTIVE RATE OF UK TAX *
ON COMPANY INCOME
Percentage figures, average 1976-80
Home and industrial and commercial companies +
Current
Historical cost basis
cost basis SSAP 16
Total corporation tax 25 65
Excluding ACT 15 40
Financial companies
Total corporation tax 30 40
Excluding ACT 25 30

* Corporation tax before deducting double taxation relief (i.e. excluding
overseas tax suffered in excess of such relief) plus income tax deducted from
investment income, less corporation tax on capital gains.

+ Excludes those trading mainly overseas and in North Sea oil and gas.

LANGUAGE: ENGLISH

GRAPHIC: Graph, no caption, Martyn Barnes; Illustration, Martyn Barnes

Copyright 1982 The Financial Times Limited

1252 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Lucid case for doing nothing

SECTION: SECTION I; Editorial Comment; Pg. 12

LENGTH: 695 words

THOSE WHO are used to wrestling with tax forms and official regulations are in
for a pleasant surprise if they decide to read the Government's new Green Paper
on corporation tax: it is admirably organised and beautifully clear. Anyone
wanting to get a grasp of most of the issues involved (but not quite all, as we
will see) need look no further. This is an unusual merit in a government paper
and deserves a bouquet before any less favourable comments are offered.
Unfortunately, they are needed.

The present system of corporation tax for which the Government, rather
surprisingly, claims the merit of simplicity, is the product of many years of
emergency patching up. As might be expected from a series of debatable
compromises erected on a basis of messy principles, it is a ramshackle
structure. It is heavily biased in favour of manufacturing industry -- as the
Green Paper shows, the tax burden on manufacturing under the present system is
some 70 per cent less than it would be on a basis of current cost accounting --
and especially in favour of investment in plant and in stocks.

Alternatives

It also yields very little revenue. Mainstream corporation tax, apart from the
North Sea, provides only about 2 per cent of government revenues. (The Green
Paper inflates this figure by adding in advance corporation tax, which is simply
wrong. ACT, whatever its name, is simply part of personal taxation).

The case for reform might therefore seem overwhelming; but the Green Paper,
while it reaches no set conclusions, examines all the alternatives it has chosen
to review with a jaundiced eye. Current cost accounting is regarded, with some
justice, as too subjective to offer a basis for taxation. The legal battles
which might result would benefit nobody. except the lawyers.

Other, less subjective forms of inflation accounting are examined with the
Treasury's usual suspicion of indexation. More radical ideas, such as the Meade
committee's proposal to tax companies on the basis of their external cash flow,
whether denominated as income or capital, are seen as presenting insoluble
boundary problems with an unreformed system of personal taxation.

This argument, which can be summed up in that well known bureaucratic slogan,
"this is not within my terms of reference," is one of the two fundamental
arguments for a standstill in the paper. The other is summed up in a brief and
uncharacteristically illogical passage which argues, first, that it is
undesirable in principle to protect taxpayers against inflation in case they
learn to love it, and, second, that in hard cases they have to be protected
anyway. Hence we have capital allowances and stock relief instead of inflation
accounting, and Rooker-Wise in place of tax indexation -- and indexed government
debt dries up as soon as it proves successful.

Difficulties

Our own conclusion from these two difficulties -- equity between individual and
corporate taxpayers, and distortions arising from inflation -- would be
radically different. The first is that if a logical corporate tax system
clashes with existing personal tax, we need a wider review.

The second is that the Government does not seem to understand the difference
between protection and distortion. No system can protect taxpayers from
inflation; but when the existing system diverts resources into excessive
investment in stocks, plant and owner-occupation, and then produces exaggerated
agony when trends turn adverse, we are suffering self-inflicted wounds. The
case against logical reform is not well founded.

Two issues

Two further comments seem in order at this early stage. First, it is a sad
reflection on a decade of effort that we have a system of inflation accounting
which produces only subjective figures. The Treasury, which left the Sandilands
committee in no doubt of its own deep dread of indexation, must share the blame.
Finally, a comprehensive review would surely give more space to two issues --
European harmonisation, and the taxation of capital gains -- which are passed by
with scarcely an embarrassed nod. Elegant, but inadequate.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1253 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Sterling service

SECTION: SECTION I; Men & Matters; Pg. 12

LENGTH: 279 words

The Bank of England still maintains three grades of loo for different types of
worker, and mounts a guard of pinkcoated doormen -- one has an Admiral Nelson
hat and a cloak adorned with peacock feathers -- to keep undesirables from its
portals.

But if the Old Lady has become any less stuffy over the last few years, at least
some of the credit can be taken by Brian Quinn, a 45-year-old soft-spoken
Glaswegian who took charge of the Bank's information department in 1977 and is
now moving to a new job keeping tabs on commercial banks.

The first man to have Quinn's job, just after the war, was told "to keep the
Bank out of the Press, and the Press out of the Bank." Since the sterling crisis
of 1976 -- which was partly blamed on bad public relations in Threadneedle
Street -- the Bank has sought to make itself more accessible, though it still
frowns on journalists ringing up officials for background comment, and has a
general aversion to being quoted on anything save perhaps the most anodyne
statement on tap-stocks.

Quinn, whose passion for Celtic injects the odd footballing metaphor into his
dissertations on the money supply, will soon be assisting Peter Cooke, head of
banking supervision. He takes over the job on March 1. His gentle brogue is
likely to come in useful for dealing with the Royal Bank of Scotland -- whoever
its new owners turn out to be.

The Bank, says Quinn, is devoting more resources to banking supervision. This
applies not only to international exposure -- Poland, Brazil, Opec and so forth
-- but also at home, where financial institutions are starting to operate in
what have traditionally been banking areas.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1254 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Ground for hope

SECTION: SECTION I; Men & Matters; Pg. 12

LENGTH: 283 words

First BPC . . . now Oxford United. For someone tackling a second survival plan
within a year, Pergamon Press publisher Robert Maxwell was remarkably cheerful
when I spoke to him yesterday.

Since his personal quarantee of £120,000 to save the Third Division football
club from liquidation, he says "the phone has never stopped ringing with offers
of help."

Greater community support was a condition of the former Labour MP's agreement to
take over as chairman of the club which has an overdraft of £150,000 and bills
of £50,000 due to be paid inthe next few weeks.

"No immediate problems there now," he says -- and nothing insuperable ahead if
the local goodwill and voluntary energies can be harnessed to the tough business
lines on which he says the club will be run.

Maxwell, who lists his own recreations as chess and mountain-climbing, will
leave the football to manager Ian Greaves. "Promotion to the Second Division is
what we want."

While the team strives for that target, Maxwell intends to continue talks with
the local council about a new stadium. "Good progress so far," he reports.

He will promote the club's once highly-profitable lottery. "I got plenty of
experience in that sort of thing raising funds for the Labour Party," he says.

And he will try to recapture the family audience being lost to soccer generally
because of hooliganism and violence. A section of the ground will be reserved
for families, he says, and ways of adding to the afternoon's enthertainment will
be considered.

"No-one buys shares in a football club as an investment these days," Maxwell
reflects."But if the whole city takes an interest, it could gain great rewards."

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1255 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Unfair exchange

SECTION: SECTION I; Men & Matters; Pg. 12

LENGTH: 281 words

"You're never alone with a phone." Just my suggestion for an advertising slogan
which the Portugese telephone authorities might like to employ to entice more
people on to their chaotic network. "Try to dial an office," reports my man with
the aspirin and sore index finger, "and before you have got through three of the
six digits, you may be plugged into the sort of party line which would deter the
most irrepressible reveller."

My exhausted correspondent tells of trying to hang up after rashly phoning the
speaking clock. Not only would the clock not go away, but it was joined by a
voice claiming that the number which had been dialled was disconnected, a
weather report, and of six cross people crossing wires in the same heap of
telephonic spaghetti. And when conditions are particularly favourable, I
gather, you even stand a chance of picking up the radio news and sport as well.

You can hang up as often as you like -- your faceless friends will still be
there when you pick up the receiver once more. So what then? With a bit of
luck, you borrow somebody else's phone to report that your own is out of order.
After no more than an hour or so, you may get through to complaints -- assuming
the commandeered line does not yield to the same sort of mating urge which
afflicts your own. Complaints, needless to say, is engaged or just not
answering at all.

The reason for all this is, apparently, the heavy rains which have poured down
upon the country after a year-long drought. For the farmers, the downpours are
salvation from ruin. Less happy the urban populace -- except, I suspect, the
lonely hearts, who are probably rather enjoying themselves.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1256 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Dangerous age

SECTION: SECTION I; Men & Matters; Pg. 12

LENGTH: 97 words

I regretted some time ago in these columns the demise of "Dark Horse," the house
magazine of Lloyds Bank which won itself a place in history with a definitive
study of paper-cluip usage in office situations.

I only wish L hadpaid equal attention to its classified advertising columns, if
a clipping sent to me by Mr R. Uearce of Birmingham is at all representative of
the general tenor.

The advertisement, under the "Wanted" heading, reads "Potential managers are
required for City bank. Persons between 25 and 30 with 40 years' experience.
Box XXX."

Merlin?

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1257 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

BYLINE: By Terry Dodsworth in Paris

SECTION: SECTION I; French Industrial Policy; Pg. 13

LENGTH: 1748 words

THE TWO kinds of economic thinking summarised in these statements lie at the
heart of the debate that is currently raging in France over the new industrial
policy being ushered in by the Socialists. On the Left stands the
interventionist camp clustered around President Mitterrand, firmly convinced
that the guiding hand of the state is needed to propel the country into a new
age of full employment, high technology and increased leisure. On the Right are
massed the so-called liberals, preaching the virtues of the market system,
French specialisation and industry whose hands are free to respond to the
dictates of international competition.

The question the Socialists have to answer with their new industrial policy is
essentially the one posed by the American businessman: why redesign an economic
system that is in good working order, that has carried France through the oil
price crisis better than most of its rivals, and that has established the
country as the world's fourth or fifth ranking exporter?

The Government's response to these objections is best summed up by M Alain
Boublil, a bubbling 36-year-old guru on industrial policy who is now firmly
esconced in a wing of the Elysee Palace. M Boublil does not deny the
achievements of French industry under conservative governments over the last 20
years. But he argues that it has missed a crucial turning point that can best
be remedied by state intervention.

M Boublin's analysis is based on what he regards as a vital change in the
trading environment in the mid-1970s. At that time, he says, two important
phenomena emerged. First, the internationalisation of trade unleashed in the
1960s reached a reasonable degree of maturity, imposing fresh competitive
standards; secondly, the electronics revolution began to make a deep impact,
putting a premium on new technology across the full range of industry.

The combination of these two factors, he argues, meant a shift from an economy
led by demand to one in which costs and quality have become allimportant. To
this extent, he says, the French Socialists are "supply siders." They intend to
lean on investment as the level through which to stimulate both structural
change in industry and the latent demand for competitive products.

"Ten years ago, all you had to do was to build a factory and the demand was
there. Today, you have to supply at the right price. This is what the Japanese
have realised."

Acording to the Socialists, the weaknesses of the last Government's policies
showed up in two particular areas -- the dramatic rise in unemployment (now
standing at 2m), and the steadily deteriorating terms in France's trade.
Indeed, far from ignoring the issue of competitiveness, as their opponents
sometimes claim, Socialist planners are alarmed by the signs that French
industry is marking time. They point accusingly to the gradual increase in
foreign penetration of the domestic market, and the consistent failure of French
companies to increase exports to sophisticated industrial countries. This trend
is seen as tangible evidence of a steady stagnation in product quality and
competitive prices.

The key to breaking this circle, they say, is not to cut and trim like the last
Government. What is needed is a more positive response to develop new products,
modernise production methods, develop better machine tools and so on. Hence the
enormous boost that is being given to the research budget (rising this year by
about 30 per cent), and to funds for industrial investment and training.

Investment is the central element in this process because it is here, the
Socialists claim, that industry has failed France over the last few years.
According to Government figures, French private companies have cut their
spending by an average of about 1 per cent a year in the four years to 1980;
expenditure went up in only one year -- 1980 -- and then dropped savagely again
in 1981 by 11.5 per cent.

This fall in investment, says M Boublil, explains the failure of French industry
to adapt as quickly to technological change as its main industrial rivals in the
U.S. and Japan. Both of these countries created more jobs, totally and
proportionally, in the latter half of the 1970s -- 12m in the U.S., and 3.3m in
Japan, against only 500,000 in France.

But, the American businessman might respond, what about the former Government's
attempts to make French industry more internationally competitive? What about
the special plans for encouraging new industries like robotics, office equipment
and microchips, to say nothing of the space programme, the telecommunications
industry, the TGV high speed frain and the electronic telephone directory? By
contrast with this activity, the Socialists seem to be driving towards a job
preserving system in which nationalisation is a talisman serving nothing but
party dogma.

M Boublil has two main answers to this line of criticism. First, he says,
nationalisation will reinforce the positive elements in the previous
Government's programme. The French industries which impress foreigners, he
argues, are invariably those, such as telecommunications and nuclear power, that
are already run by the state.

Through nationalisation the same principle is now to be applied over a wider
area of industry. The banks, accused of progressively siphoning more of their
funds into non-productive, low-risk areas like property, will be asked to
mobilise this idle capital to get the wheels of industry turning; and the big
industrial companies being taken into the state sector will be encouraged to
take a less cautious attitude to new technology.

As a result, the Government should be able to ensure that France plunges further
and faster into the technological revolution in strategic areas like consumer
and industrial electronics (where 42 per cent of the country's economy will be
in state hands),

M Boublil's second point underlines a radical change in official thinking about
the traditional industries -- the sectors that the last Government was
determined to shake up, even at the cost of exacerbating unemployment. The old
policy of hyper-specialisation, aimed at concentrating resources on choen "new"
technologies, while forcing the traditional industries to rationalise and reform
themselves, has been thrown out lock, stock and barrel. There are to be no
"condemned sectors" in Socialist France.

"Take the French shoe industry, for example," says M Boublil. "You can make
shoes in old factories, using out-of-date machines and traditional methods. Or
you can use computer design, advanced numerically controlled machines and modern
methods. If you do the latter, you can be competitive in France."

The danger of this approach is that resources could be poured into hopelessly
doomed companies purely to save jobs. But the Socialists base their policy on a
broader view of industrial change than that which tended to be projected by the
last Government. Technology, they say, is a tool which is applicable
everywhere, not only in the so-called advanced sectors. It is only through
additional investment in these decaying industries that they can be hauled up to
internationally competitive levels.

This policy shift lies behind the recent flurry of interventions launched by the
Industry Ministry to reconquer the domestic market in the leather industry,
wood-based manufacturing, toys and machine tools.

More of these projects will undoubtedly follow, based on a variety of new
instruments to stimulate growth.On the demand side there will be new public
buying programmes and attempts to persuade French companies to buy from domestic
suppliers. On the supply side, cheap investment funds, often linked to
developing the work force, are being set aside, while search spending is being
stepped up.

The clear element of nationalistic -- even Gaullist -- tub thumping in these
projects has inevitably attracted suspicion from France's trading partners.
Indeed, the Socialists make no bones about the fact that they are no longer
going to play the "liberal" game unconditionally. They are not aiming to put up
trade barriers. But they totally reject the type of de-industrialisation that
has gone on in britain over the past few years by leaving industry to fend for
itself in an unfavourable climate.

The policy implies, however, an enormous gamble: will the Government be able to
get the necessary investment to reduce unemployment at a rate that is acceptable
to its supporters?

Socialist planners say that between FFr 25bn and FFr 40bn a year (a little under
half of this year's planned budget deficit) needs to be injected into
investment, research and training over the next five years to achieve their
aims. But since the elections, private industry has sunk into a mood of sulky
obstruction in response to the Government's labouroriented policies and new
taxes.

This passive resistance from much of the French backwoods patronat is one of the
reasons why the Government is so anxious to push through the Nationalisation
bill as quickly as possible.

It needs to start investment rolling in the new state companies by the spring in
order to maintain the growth in the economy which started with the injection of
new buying power last summer. If it can create this dynamic current, private
industry will join it, exports will be carried along by the next upswing in the
world economy, and President Mitterrand can coast home for his seven-year term.

The reverse of this optimistic scenario is the kind of economic Armageddon
imagined by the American businessman.

"I believe that the Government may well fail to take sufficient account of the
enormous competitive pressures in international markets as it tries to
reorganise industry. Instead of going down, unemployment could go up, the
Government will be forced to do things that are diseconomic, and the
competitivity of French companies will drop sharply. And then there will be no
way out; the barriers will have to go up all around the country." Either way,
French industry is heading into exciting new territory.
FOREIGN PENETRATION OF FRENCH MARKET
in percentages
1970 1975 1981
Semi-manufactured goods 21.9 22.3 28.8
Household goods 27.5 38.2 51.7
Capital goods 25.0 26.1 37.3
Transport equipment 18.5 22.2 29.3
Industrial products 17.4 20.5 28.7

Source: National Statistics Office

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1258 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

The Alliance after the honeymoon

BYLINE: By Peter Riddell

SECTION: SECTION I; Lombard; Pg. 13

LENGTH: 715 words

THE SIX-MONTH honeymoon of the Social Democrat/Liberal Alliance is now over, and
not before time. The surprising point about the recent squabbling over the
allocation of parliamentary seats is not that it should have occurred but that
it has taken so long to come out into the open. Behind all the bluster and
yesterday's suspicious reconciliation there are fundamental questions about the
nature of the Alliance and about the approach to power of the two partners.

The alliance itself is not in question. As Mr Leon Brittan, one of the recent
band of gleeful Cassandras from the other major parties, has pointed out, "the
lure of electoral success will prove too strong for the partners to dispense
with each other's services." More significant, though contentious, is Mr
Brittan's point about whether the episode represents "not some temporary phase
in the formation of a new credible centre force but rather a clash of two
distinct and incompatible traditions, philosophies and parties."

The two parties are distinctively different in origin and structure but it is
far too early to say whether this will make them incompatible over the long
term. Indeed, a central irony is that, if the Alliance succeeds in winning
power and enacting proportional representation, the two partners will be able to
co-exist in friendly rivalry with neither side feeling elbowed out by the other.

The snag is that both partners have their eyes on the same group of seats. The
Liberals are determined to fight the 50 or 60 seats where they came second in
the May 1979 election and have strong local organisations and roots. And SDP
psephological experts believe that past Liberal success, notably in the February
1974 election, is the best guide to winnable seats for the Alliance. Therefore,
under the terms of the national guidelines on allocation of seats, the SDP
argues that it is entitled to its fair share of the ones where the Liberals have
done well in the past.

This clash is at the heart of the recent row and highlights the differences
between the parties. The Liberal Party has been, and is, a loose federation of
semi-autonomous local parties, generally prizing their independence. They have
gained ground against the two major parties only after lengthy hard work. They
have often required a by-election to capitalise on this effort and get someone
elected to Parliament (over half their present MPs). These parties are
reluctant to surrender hard-won ground

The SDP looks at politics more from a national context and has a more
centralised organisation, at least until its constitution is sorted out in the
spring. The heart of the SDP is a group of ex-Labour MPs and activists who are
sceptical about the electoral importance of local influences and organisations.
They believe the SDP is what gives the Alliance credibility and that it will be
national trends, rather than previous local work, which will ensure electoral
success. The SDP, therefore wants its share of winnable seats.

The dispute could be easily resolved if the Alliance was certain of winning 250
plus seats after the next election. There would then be plenty of winnable
constituencies -- say around London and in the Midlands -- which have previously
been regarded as Labour/Tory marginals but which could now be good Alliance
prospects. But no one can be sure of such a result. SDP leaders are privately
worried that, if the Alliance as a whole wins only 50 to 100 seats, the Liberals
and a minority of SDP experts, might take most of them unless the SDPgets a
chance of fighting those now in dispute. The alternative view, held by Liberals
and a minority of SDP experts, is that once the political mould has really been
broken new seats will become good Alliance prospects.

The process may not be very edifying for those who take pride in calling
themselves political virgins or who seek a new style of politics. But
democratic politics is about power and personal ambition as much as principles,
and to pretend otherwise is cant. After the honeymoon in 1981, both partners
will this year be forced to realise what the pursuit of power means -- more
humility perhaps by some SDP leaders and a greater willingness to compromise and
think nationally by some Liberals.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1259 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

North Sea revenues -- a stable and flexible tax

BYLINE: Antony Part (Sir), The Orion Insurance Company. 70, King William
Street, EC4.

SECTION: SECTION I; Letters to the Editor; Pg. 13

LENGTH: 401 words

From the Chairman, Orion Insurance Company

Sir, -- In his interesting article (January 7) on the taxation of North Sea oil,
your Energy Editor confirms the criticisms of the existing system by the
Institute for Fiscal Studies' Committee, but quotes some doubts about our own
proposals that he has gleaned from some of the oil companies.

These criticisms are not well founded. First, considerable legislation would
not be needed: Appendix D to our report explains in detail how the legislation
covering petroleum revenue tax can be adapted without any significant difficulty
to cover our proposed petroleum profits tax (PPT).

Secondly, it is implied that the application of our proposal to existing fields
will require complex and potentially controversial researches into the past
history of each field. This is not so: the information required is already on
the record, if only for the purposes of PRT and, as we say in our report, we do
not think that there should be room for much disagreement between the Inland
Revenue and the companies over the matter.

Thirdly, it is suggested that "anomalies would probably arise as companies
juggle their pretax costs to avoid triggering higher tax bands" for the purposes
of PPT. Some attempts at juggling are, no doubt, an inescapable consequence of
any tax regime; but there would be much less scope for them under the single tax
that we propose than under the existing complex interplay of four taxes and
three different kinds of relief.

The article refers to some concern that our proposals would drive the after-tax
profitability of all fields towards a similar, modest rate of return. It is
true that under PPT fields which yield a similar degree of profitability would
attract a similar rate of tax, but the top marginal rate under our proposals
would be lower than that under the present system and we believe that the
undoubted risks inherent in NSO operations would be adequately rewarded if the
operators of even the most profitable fields are enabled, as we propose, to
benefit from a tax-free rate of return (as defined in our report) of 15 per cent
and to retain a substantial amount of the balance.

Our primary purpose has been to avoid patching up the existing ramshackle system
with its unpredictable impact and to replace it by the simple and stable but
flexible system which the Chancellor has been seeking.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1260 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Credit card operations

BYLINE: Trevor Nicholas, Barclaycard Centre, Northampton.

SECTION: SECTION I; Letters to the Editor; Pg. 13

LENGTH: 367 words

From the Divisional General Manager, Barclaycard.

Sir, -- Mr Latimer's letter (December 30) prompts me to set the record straight
on the profitability of credit card operations and service fees charged to
retailers: --

The average interest rate on outstandings is significantly less than the 27 per
cent quoted by Mr Latimer, who appears to have ignored the free credit period of
up to eight weeks enjoyed by the majority of cardholders. For example, a
purchase repaid over three months cost around 19 per cent, and with cost of
funds averaging 16 per cent, the margin can in no way be considered excessive.

The average fee paid by retailers to Barclaycard is less than 2 1/2 per cent, in
return for which retailers obtain, inter alia, some or all of the following
benefits: increased turnover; higher average transactions; guaranteed payment --
no bad debts; greater security than when handling cash;

This fee must also cover the credit card company's costs of voucher processing,
authorisation calls and fraud. In recent years, Barclaycard has not recovered
the full costs of servicing its merchant network.

To suggest, incidentally, that this modest fee represents the net profit of
"most businesses" is, of course, nonsense.

The retailer's decision to offer the Barclaycard facility is entirely voluntary
and I cannot believe that 3,000 new merchants would join Barclaycard every month
-- as they did in 1981 -- unless they believed that the benefits of membership
far outweigh the costs.

The Monopolies Commission examined Barclaycard's profitability in great depth
and in its report (1980) said that there was no justification for the view that
profits were excessive Since that evaluation, profitability has declined
significantly as fraud, cost of funding and the cost of public sector services
such as rates, postages and telecommunications have risen.

We are in no way complacent in the credit card industry and there is always room
for improvement in the services we offer. It is, however, a lowmargin business
-- less than 1 per cent on turnover -- and no one should be under the delusion
that credit card operations provide a path to easy profits.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1261 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Solidarity: a test for the West

BYLINE: Vasili Stepanov, Novosti Press Agency, 4, Zybovsky Boulevard, Moscow.

SECTION: SECTION I; Letters to the Editor; Pg. 13

LENGTH: 397 words

From Mr V. Stepanov

Sir, -- The article "Solidarity: a test for the West" (December 29) by Anthony
Robinson puts forward a surprising argument for a European business newspaper.

East-West trade is potentially a rich source of mutual benefit for both sides.
President Reagan's attempt to impose sanctions is, in business terms,
disastrous.

As with President Carter's illfated grain embargo, the only people sanctions
will really hurt are their instigators and those who join them.

For many European countries action to half the pipeline deal, for instance,
would lead not only to a crisis in our trade relations, but to severe economic
effects within the countries concerned. In a period of recession in the West
Soviet orders are helping to keep some industries working and providing jobs
which would otherwise be lost.It is reckoned that British interest alone in the
gas deal is worth over £160m.

But, of course, the U.S. sanctions do not come out of the blue. They are only
the latest in a series of U.S. moves to prevent the gas pipeline deal, in
particular, from coming to fruition. The U.S. manufactured ever more frenzied
and fanciful alternatives as the deal came nearer to completion. Now Poland
gives another opportunity to try to crush the deal.

Behind the anti-Soviet propaganda and hypocritical concern for Poland coming out
of the White House, could it be that Washington's real concern is to prevent
Western Europe slipping, even ever so slightly, from the grip of the U.S. energy
monopolies? Washington may be disappointed that its carefully orchestrated
plans for counterrevolution in Poland have been foiled but its present policy
with all the talk of a "test" of the Western alliance has more to do with
establishing U.S. dominance over its Western partners than with helping the
Poles.

Arguments in the Western alliance are not caused by the hand of Moscow, although
Moscow's hand seems to be everywhere in the White House view. The present
disagreements reflect very real political and economic contradictions in the
relations between the USA and its European Nato allies.

It is strange that Mr Robinson should seem to adhere to the U.S. standpoint when
writing in a paper which represents European business and its interests, which
cannot possibly be served by policies of sanctions or diminution of East-West
trade.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1262 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Why UK suppliers win orders

BYLINE: J. C. East Electro-Match, Daux Road, Billingshurst, Sussex.

SECTION: SECTION I; Letters to the Editor; Pg. 13

LENGTH: 252 words

From the Managing Director, Electro-Match

Sir, -- I am sick and tired of reading letters similar to that (December 23)
from the director general of the Institute of Marketing. We deal with many of
the greatest names in the electrical industry and find ourselves under continual
pressure to improve deliveries "because this is an export job." We know full
well that in the sector of industry in which we are dealing there is keen
awareness of the need to meet export promises and there is certainly no tendency
to obtain orders by giving falsely based delivery promises. This sector is the
thriving electronic and light electrical sector but also includes rail
transport.

Dealing almost entirely with imported components (which have to be used by our
customers to suit their equipment to foreign markets) we are fully aware, also,
of the fact that foreign suppliers are no more reliable than British. They take
longer holidays and more often and they also repeatedly promise what they cannot
perform.

I think the best thing that people like Mr Blood can do is to keep out of the
papers, and make contact with those responsible by writing directly to them
instead of for all the world to see. Foreigners read the Financial Times and
other British papers and they are only too happy to believe the self-deprecatory
correspondence about the performance of British industry. If we must have
letters about our performance then let them be printed only when there is
something good to say.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1263 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

U.S. veto plan alarms Riyadh

BYLINE: BY RICHARD JOHNS, MIDDLE EAST EDITOR, IN LONDON

SECTION: SECTION I; Pg. 14

LENGTH: 430 words

HIGHLIGHT: SAUDIS SEE THREAT FROM GOLAN ISSUE AND IRAN'S WAR GAINS

SAUDI ARABIA and the other conservative oil producers of the Gulf are deeply
apprehensive about the possibility of a U.S. veto of the resolution before the
UN Security Council condemning Israel's annexation of the Golan Heights.

If the U.S. Administration failed, in addition, to take its own unilateral
measures against Israel, the pressure on them from radical Arab states to impose
oil sanctions against the U.S. and other western states will grow remorselessly,
according to senior Saudi officials.

According to well informed travellers from Riyadh, the Saudis are also alarmed
at the gains made by Iran in its conflict with Iraq. The Saudi Government is
well informed about the development of the war through its access to the
electronic data gathered by the Awacs radar surveillance aircraft operated from
its territory by the U.S. Air Force.

Associated with these fears is Riyadh's information about the recent coup
attempt in the neighbouring Gulf state of Bahrain. The Saudis' understanding is
that those arrested before they could attempt the overthrow of the Al Khalifa
regime - including 13 Saudis - were very well armed and well trained.

The U.S. supported the resolution condemning Israel which followed the decision
of Mr Menahem Begin's Government and the vote of the Knesset last month
extending Israeli law, jurisdiction, and administration to the Golan Heights.

The Saudi ruling hierarchy is perplexed by Washington's reaction to the
annexation of the Golan Heights. In particular, they are bewildered by the way
in which the U.S., having suspended an order for $300m of military equipment,
subsequently improved the terms of the next $2.2bn aid package for Israel.

The Kingdom's disquiet was expressed publicly by Prince Saud al Feisal, the
Foreign Minister, at a news conference held late on Wednesday in Riyadh at the
end of a visit by Sig Emilio Colombo, his Italian counterpart.

He said that if the UN Security Council did not approve sanctions against Israel
its failure to do so would bring "conflict and not peace" to the Middle East.
He appealed to the U.S. to act "positively."

Saudi Arabia and fellow members of the Gulf Co-operation Council, the six
traditional Arab regimes of the region, are also understood to be deeply alarmed
about developments on the Iraqi-Iranian war

Casualties and loss of ground suffered by Iraq are one reason why the Saudi
leadership urged Syria's President Hafez al Assad to use any influence deriving
from his links with the clerical regime in Iran to bring an end to the conflict.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1264 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Iraqi oil pipeline sabotaged in Turkey

BYLINE: By Metin Munir in Ankara

SECTION: SECTION I; Pg. 14

LENGTH: 241 words

IRAQ's oil exports suffered another serious blow yesterday when saboteurs blew
up its main pipeline carrying crude to Yumurtalik on Turkey's eastern
Mediterranean coast.

Until the pipeline is repaired, Iraq's oil exports are unlikely to exceed
300,000 barrels a day, compared with nearly 3.5m barrels a day immediately
before the war with Iran broke out in September 1980.

Last weekend the newly reopened pipeline to Tripoli in northern Lebanon was also
blown up

Since the outbreak of the Gulf war, Iraq has relied on the pipeline to Turkey
for the bulk of its exports, averaging about 600,000 b/d. Agreement with Syria
provided for another 300,000 b/d through the pipeline to Banias

Iraq has been forced to borrow heavily from Gulf Arab states in order to sustain
its war effort and maintain its economic development programme. It is
understood to have received pledges of $14bn in the past nine months, primarily
from Kuwait and Saudi Arabia.

Repair work on the Turkish pipeline is reported to have begun almost immediately
and officials hope it can be completed in five days. The explosion took place
inside Turkish territory close to the border with Syria.

Work is also continuing on the Tripoli pipeline but has been hampered by bad
weather. Until both pipelines are operating again Iraq is solely dependent for
its remaining oil exports on the good will of Syria, which has been supporting
Iran in the Gulf war.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1265 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

BYLINE: Bill brokers at a discount

SECTION: SECTION I; The Lex Column; Pg. 14

LENGTH: 445 words

The importance of the discount market to the London financial system gives the
Smith St Aubyn disaster a significance out of all proportion to the company's
size. One of the most successful of the discount houses in recent years - the
balance sheet total doubled between 1977 and 1981 - Smith announced yesterday
that it had run through all its revenue reserves in the last eight months.
Shareholders were invited to rescue the company by subscribing £2.7m through a 1
for 1 rights issue at 25p, while the shares slumped from 132p to 35p.

The losses, which must be of the order of £15m, seem to relate almost entirely
to the house's giltedged portofolio. This totalled £308m in the April balance
sheet - struck at what happened to be the highest point of the market in 1981.
Some of the stock was variable rate, but there was a very large holding -
apparently well over £100m - of Treasury 15 per cent 1985. The price of this
stock had fallen by 11 points by December, and a holding of this size could only
be placed at a further discount to the market when Smith finally cut its book.

Misjudgement in the gilt-edged market is easy to understand; indeed Smith's good
recent performance must have owed a lot to its readiness to take risks, and
sooner or later it was bound to get things wrong. Its failure to cut its losses
sooner and its decision to build up an enormous unmarketable holding make less
sense. By the time of the interim statement in October things must have been
almost as bad as they are now and one can only gasp at Smith's nerve in holding
its interim dividend - at a cost of £1/2m.

The pressure to take risks in the gilt-edged market stems from the houses'
problem in maintaining the real value of their net worth, and hence the size of
book they may run, through conventional money market activities. Over the long
term the houses' books - for their own comfort and the Bank of England's - must
keep pace with their costs and with the deposits of the banking system which
they serve. Even after its rights issue, the size of Smith's balance sheet will
have to fall from £600m to around £200m; the discount market's capacity as a
channel for liquidity falls by the same amount.

The Bank is less willing than it was to feather-bed the discount houses, and two
rescues, one merger and shrinkage elsewhere suggest that the authorities'
"chosen vehicle" is failing its MOT test. A new multiplier system to take
account of the different risks of various assets is perhaps overdue, and might
have limited Smith's losses. But in the end the Bank cannot rely on
institutions that are unable to look after themselves.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1266 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Corporation tax

SECTION: SECTION I; The Lex Column; Pg. 14

LENGTH: 114 words

The only crumb of encouragement for companies in the Green Paper on Corporation
Tax is that is does not look as though the original plan to introduce a gearing
adjustment to the new method of stock relief is going to be implemented in the
foreseeable future. Overall, the Treasury and the Inland Revenue appear to be
happy with their existing patched-up system, on the view that any serious
shortcomings will be cured by intermediaries like leasing companies. For the
tax authorities, ad hoc solutions have the themendous advantage that they do not
have to be consistent. This way, inflation relief of a kind can be offered to
companies but not to private individuals.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1267 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Kwik Save

SECTION: SECTION I; The Lex Column; Pg. 14

LENGTH: 149 words

Yesterday's rights issue from Kwik Save Discount will raise a good deal more
cash than Smith St. Aubyn's but, at one for ten, it is still a modest affair.
The company came to the market twice for funds in the mid 1970's but its big
spending programme has been financed from cash flow over the past four years.

Kwik Save's balance sheet is showing no net debt at a time when working capital
is under the greatest seasonal pressure, so there is no urgent need for new
money.But it wants to step up the acquisition of freehold properties and expects
that stock levels will be pushed up as food price inflation accelerates. The
shares have outperformed strongly over the past year and, with the historic
yield pinned close to 3 per cent, new equity must have looked very tempting.
The issue will raise £11.9m, more than Kwik Save has paid in dividends since the
last cash call.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1268 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Electronic Rentals

SECTION: SECTION I; The Lex Column; Pg. 14

LENGTH: 153 words

The six months to September were frustrating for Electronic Rentals. TV rental
subscriptions fell by two per cent but supply problems with Philips deprived the
group of a chance to cash in on the VCR boom. So UK rental income is down and,
despite a reduced interest charge, pre-tax profits work out marginally lower at
£7.4m.

The supply bottlenecks have since been resolved and the second half will benefit
from a far lower level of exceptional costs, so the full year should show a
confortable advance to about £18m. At 86p, the shares trade on only about 2 1/2
times prospective net cash flow. But reported profits will be held back over
the next couple of years by declining balance depreciation on VCR's and, with
the balance sheet already stretched, Electronic Rentals may be giving some
thought to refinancing its £10m subordinated loan on which repayment is due to
begin two years from now.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1269 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Britain's vehicle output falls sharply

BYLINE: By Kenneth Gooding in London

SECTION: SECTION I; Pg. 14

LENGTH: 422 words

VEHICLE production in Britain dropped sharply again last year.

Output of commercial vehicles fell to 230,100, the lowest since 1949, and 41 per
cent down on the 389,200 made in 1980, according to provisional estimates from
the Department of Industry yesterday.

In spite of successful British-built models like the new Ford Escort and the BL
Metro, production of cars also fell again last year.

At 903,000, car output was 2.27 per cent down from the 1980 total of 924,000 -
the first time since 1958 that production dropped below 1m.

The manufacturers blame the high value of the pound against most other
currencies for making exporting particularly difficult last year while at the
same time giving imports to the UK an extra competitive edge at a time of
reduced demand.

By the end of November, for example, commercial vehicle sales were down 20 per
cent on the same period of 1980, but the importers had pushed up their share of
the market from under 25 to nearly 32 per cent.

The UK-based commercial vehicle manufacturing industry has had to cut back
sharply in the face of such a severe drop in output.

Foden went into the receiver's hands and was bought by Paccar of the U.S. ERF
cancelled expansion plans, reduced its range and cut its workforce by more than
half, from 1,400 to 750, in the past year.

Seddon Atkinson, owned by International Harvester of the U.S., cut its
manufacturing capacity by half and made 44 per cent of its workforce redundant.

Last year ended with Leyland Vehicles, BL's subsidiary, announcing a
restructuring plan involving a 10 per cent cut in capacity and a 27 per cent
reduction in its workforce.

Commercial vehicle output is expected to pick up from last year's very low level
in 1982 as demand in the UK improves towards the end of the year and because
stocks have been reduced to minimum levels.

The Department of Industry pointed out yesterday that its estimate of commercial
production in December, while a little down on the November total, continued to
reflect the "moderate improvement apparent in recent months."

Car output in December remained below the average level achieved in the June to
October period when there was some recovery from the performance earlier in the
year.

The major blow to car output in 1981 was the closure of Talbot UK's plant at
Linwood in Scotland.

Industrial disputes, particularly the one which stopped output at BL's
Longbridge plant where the Metro is made, played a part in the setback early in
December.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1270 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Saudis prepared to resume oil supply contracts with Italy

BYLINE: BY JAMES BUXTON IN ROME

SECTION: SECTION I; Pg. 14

LENGTH: 268 words

SAUDI ARABIA is once again prepared to enter long-term oil supply contracts with
Italy on a country-to-country basis after the Italian foreign minister, Sig
Emilio Colombo's visit to Riyadh this week.

The visit appears to have laid to rest the dispute between the two countries
caused by the scandal over a contract signed by them in mid-1979 for 12.5m
tonnes a year over two and a half years at an advantageous price.

The contract was terminated abruptly by the Saudis when it became the centre of
allegations in Italian political circles of kickbacks to Italian politicians and
Saudi princes. The allegations have never been proved but they infuriated the
Saudis.

Last August, ENI, the Italian energy concern, signed an agreement to take
200,000 barrels per day (roughly equivalent to 10m tonnes a year) from Petromin,
the Saudi state oil company, through the agency of Texaco, one of the Aramco
partners. That deal expires at the end of this month.

Sig Colombo announced yesterday that the Saudi Government was prepared to meet
Italy's need for a long-term country-to-country contract to replace the current
shortterm one. The details would be worked out by ENI and Petromin, he said.
Italy has asked for between 100,000 and 150,000 b/d (5m to 7.5m tonnes a year).

Sig Colombo implied that additional temporary country-to-country contracts could
probably be made above this level, if necessary. His visit, he said, ended the
misunderstandings between the two countries.

Sig Colombo also said that the obstacles to increased Italian exports to Saudi
Arabia had been removed.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Emilio Colombo: obstacles removed

Copyright 1982 The Financial Times Limited

1271 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Labour's Left denies truce means 'peace at any price'

BYLINE: BY ELINOR GOODMAN AND JOHN LLOYD IN LONDON

SECTION: SECTION I; Pg. 14

LENGTH: 411 words

THE FRAGILITY of the agreement by the British Labour Party and trade unions to
preserve the peace until the next general election was exposed yesterday as
Right and Left placed widely different emphases on what was decided at talks on
Wednesday.

Supporters of Mr Tony Benn, the leading left-wing radical, tried to put a price
on the peace agreed in such a euphoric atmosphere only 24 hours before. While
Mr Benn himself maintained a diplomatic silence, his associates made it clear
that they wanted to use the threat of another divisive contest for the party's
deputy leadership to protect the gains made by the Left over the last three
years and prevent any purge of Far Left elements.

Mr Chris Mullins, one of Mr Benn's closest advisers during last year's deputy
leadership campaign, warned that the Left would not "surrender." It was not, he
insisted, "peace at any price." If the Right thought the Left would "lie down
and allow the Right to walk all over them" they were wrong, he said. His
remarks brought an immediate reminder from the party chairman, Dame Judith Hart,
of the need to preserve the peace and of the dangers of "sabotaging" the deal.

Senior union leaders - who now hold the fate of the party much more firmly in
their hands than before - remain convinced that Mr Benn will not stand again.
It is understood that a delegation of leftwing general secretaries held a
meeting with Mr Benn before Christmas, at which they made it clear they would
not support his continued candidature, and where he replied that he would not
press it.

Yesterday, some rightwingers were also concerned that there had been a
"sell-out" at the talks and were worried that the new atmosphere of unity might
encourage Mr Michael Foot, the party leader, to abandon his newly launched
attack on the Far Left. But the Right's main tactic seemed to be let the Left
be the first to break the truce.

The greyest part of the truce seems to concern expulsions from the party and the
non-endorsement of parliamentary candidates selected by constituencies. Mr
Benn's supporters insisted yesterday that the agreement included a commitment
not to indulge in "witch hunts", while rightwingers said that no committent had
been made.

If Mr Foot did feel bound by such a condition, it could seriously undermine the
effectiveness of the investigation the party launched into the activities of the
Far Left pressure group, Militant Tendecy, last month.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1272 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Review of UK tax on companies

BYLINE: By David Freud in London

SECTION: SECTION I; Pg. 14

LENGTH: 358 words

THE UK Government's longawaited discussion document on possible changes in the
way companies are taxed reveals that a third of all British industrial and
commercial companies, excluding the North Sea sector, rarely or never pay
mainstream corporation tax - the tax on profits.

The Green Paper on Corporation Tax, published yesterday by Sir Geoffrey Howe,
Chancellor of The Exchequer, indicates a strong commitment by the Government to
the existing imputation system of taxation.

The paper, which was originally foreshadowed in March 1980, is written on the
assumption of an unchanged level of revenue from corporation tax, and the
Chancellor said yesterday that the aim was to discuss the issues in an open and
exploratory way.

He stressed that the Government would "not wish to propose major change in the
corporate tax structure, except after full consultation

The biggest section of the paper investigates ways of adjusting taxable profits
to take account of inflation, with a particular emphasis on whether the UK
current cost accounting standard SSAP16 can be used for this purpose.

It estimates that use of current cost figures for computing tax liability would
involve a slight shift in the weight of taxation from the financial sector to
manufacturing and distribution companies. However, the estimate is very
tentative.

The other main tax systems briefly considered are:

* To charge "gross" historical cost trading profits before deducting
depreciation and after deducting interest, with no special reliefs for stock or
capital investment;

* To charge conventional historical cost trading profits (after deducting
depreciation and interest), without special reliefs;

* To retain the present system but reduce the tax rate for manufacturing
industry to 10 per cent, as in Ireland;

* To base the charge on the "flow of funds" between the company and shareholders
on expenditure tax principles.

The other main areas investigated by the paper include the accumulation of tax
losses under the present system, prospects for extending the coverage of capital
allowances and the treatment of small companies.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1273 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Reksten creditors may sue Hambros

BYLINE: BY WILLIAM HALL IN LONDON AND FAY GJESTER IN OSLO

SECTION: SECTION I; Pg. 14

LENGTH: 366 words

A DISPUTE over the future of the three remaining tankers in the financially
troubled fleet of the late Hilmar Reksten is threatening the preliminary
agreement reached last month between Hambros Bank and the Norwegian authorities.

The deal involved nine of Reksten's fleet of 12 tankers being shard out between
Hambros Bank, the Norwegian Guarantee Institute and the Aker shipbuilding group.

In addition, Hambros, which was first priority mortgage lender on many of the
vessels, agreed to inject about $25m of cash and the Norwegian authorities
dropped plans to sue the merchant bank.

Now, two creditors with claims on the three tankers not covered by the agreement
(Octavian, Cyprian and Vespasian) have indicated that they are not going to
relinquish their right to sue Hambros Bank, which was involved in putting
together the rescue of the Reksten fleet when it ran into financial difficulties
in the mid-1970s.

It is understood that a condition of last month's agreement with Hambros was
that all of Reksten's creditors would undertake not to sue.

The creditors who may topple the settlement are two jointly-administered ship
mortgage firms in Kristiansand - Redernes Skibskreditorforening and Norges
Skipshypotekforening. Together with two other ship mortgage companies - one in
Bergen and one in Oslo - they have stakes in the three tankers.

The Kristiansand companies were not parties to the December agreement, which
does not offer them any compensation for the loss they are bound to take on the
eventual sale of the Vespasian and Octavian.

The cash and other payments promised by Hambros under the deal will go the
state-backed Guarantee Institute, which provided loan guarantees for the Reksten
group, and to the Aker shipbuilding group, another major creditor which built
most of the Reksten vessels.

Of the four ship mortgage firms with claims on the remaining three tankers, only
the one in Bergen has definitely undertaken not to sue.

The Kristiansand companies now hope to negotiate some arragement which will
reduce their potential loss. For their part the Norwegian authorities have
indicated that no government cash will be forthcoming.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1274 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

ITT learns the importance of national identity

BYLINE: Ian Hargreaves; EDITED BY CHRISTOPHER LORENZ

SECTION: SECTION I; The Management Page; Pg. 10

LANGUAGE: ENGLISH

GRAPHIC: Picture, Jack Guilfoyle, Bob Hutchison; Map ITT IN EUROPE, 1. West
Germany: has 36 per cent of ITT Europe's sales and makes telecomms equipment,
motor parts, bathroom fittings, semiconductors, fasteners, pumps and Leifheit
kitchen gadgets; also has an insurance company, Transatlantische. Master
company is Standard Elektrik Lorenz (SEL). 2. UK: makes telecomms equipment,
semiconductors, pumps, control systems; also has Abbey Life and Excess insurance
groups. Master company is Standard Telephone and Cables (STC). 3. Spain:
makes telecomms equipment, TV sets. 4. Italy: makes telecomms equipment, motor
parts. 5. France: makes telecomms equipment, motor components. 6.
Scandinavia: makes telecomms equipment, industrial pumps. 7. Benelux: makes
telecomms equipment, consumer appliances, industrial heaters, Bob Hutchison

Copyright 1982 The Financial Times Limited

1275 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

No rest for the victor of Marathon

BYLINE: BY PAUL BETTS IN NEW YORK

SECTION: SECTION II; Companies and Markets; Pg. 15

LENGTH: 1045 words

HIGHLIGHT: Why U.S. Steel may have difficulty in digesting its new $6.4bn oil
company

THERE WAS a conspicuous absence of confetti and champagne to mark the end of the
two-month-long, multi-billion-dollar battle for Marathon Oil.

U.S. Steel yesterday completed the acquisition of a 51 per cent controlling
stake in Marathon, paying $125 for each Marathon share. The country's leading
steelmaker will then assume full control of on by offering 12-year 12 1/2 per
cent senior notes with a current market value of more than $80 each for each
remaining share.

But there seemed to be little revelry at either U.S. Steel or Marathon
headquarters after the hard fought victory over rival bidder Mobil. The
country's second largest oil company, which tried to the very last minute to
stay in the takeover race.

The lack of any kind of celebration was in sharp contrast to the midnight
champagne brunch Du Pont threw when it had triumphed over Mobil and Seagram last
August in America's last takeover battle of the giants, for Conoco.

It reflected, in a sense, a feeling of deja vu on the part of the contestants in
the Marathon battle, the takeover fight has dragged for two months, bogged down
in the law courts, and clearly exhausted all those involved.

But more significantly, it reflects the general uncertainties surrounding U.S.
Steel's merger with Marathon and leaves open the important question of what
Mobil, hungry for acquisition in the U.S. oil industry, will do next.

For U.S. Steel the $6.4bn acquisition of the country's 17th largest oil company,
with major assets in Texas and in the North Sea, marks perhaps the most dramatic
event in the steel company's history since it was formed in 1901. It will
create a new industrial giant with sales of more than $20bn a year ranking 12th
in the Fortune 500, just above Shell Oil.

For the steelmaker, the acquisition represents not only its biggestever
diversification but also a huge gamble. Mr David Roderick, the company's
chairman, has on several occasions offered assurances that the acquisition did
not mean his company was reducing its commitment to steel. He has claimed the
takeover will strengthen U.S. Steel and enhance its future profitability.

But the acquisition is an expensive one and will be difficult to digest. The
combined companies will have a debt-to-capital ratio of about 45 per cent which,
by Wall Street standards, is very uncomfortable.

U.S. Steel will probably have to borrow about $1.5bn to finance the transaction
as well as deplete its cash hoard from sales of various assets, including coal
and property, whose interest has sustained the company's earnings. Although
Marathon is rich in oil and gas assets, it is not a cash-rich company, relying
like other oil groups on heavy capital spending.

U.S. Steel is also by definition a capital-intensive company with large future
capital requirements. These capital requirements will now place a strain on the
combined companies' financial position as, according to several Wall Street
estimates, they will suffer cash-flow shortages which could grow to more than
$1bn in the next three years.

The gamble for U.S. Steel is all the greater because of the uncertain prospects
for oil company earnings. Recent years have seen a flattening and in many cases
a decline in earnings of major oil companies. U.S. Steel must how hope oil
prices will start rising again

Some people fear U.S. Steel will be forced to reduce its current commitment to
steel. Others feel the steelmaker will be forced to sell off some assets to
finance the transaction, including perhaps Marathon's interest in the Brae Field
in the North Sea or U.S. steel's coal holdings.

Lurking in the background is the uncertainty of what Mobil will do next. Will
it, as it has threatened, raid U.S. Steel by acquiring 25 per cent of the steel
company's stock to force it eventually to trade off some of Marathon's best oil
and gas assets?

For Mobil, the battle for Marathon has been another disappointment in a long
list of similar failures to acquire a major U.S. oil company. The courts were
responsible this time for Mobil's defeat. Although the issue has yet to be
fully resolved, the courts, both at the lower and higher levels, have given a
clear signal that they do not view favourably mergers of big oil companies
because of the anti-trust implications.

It seemed that with the Reagan Administration and a more lenient policy towards
anti-trust in Washington, the time had come for a flood of major oil-company
combinations. But the legal establishment and indeed the regulatory agencies
have proved far more rigid in the application of anti-trust law than earlier
thought.

The court setbacks suffered by Mobil will now probably put a cap, at least in
the immediate future, on a renewed oil-company merger wave.

But if the courts dealt the death blow to Mobil's hopes of acquiring Marathon,
they none the less made a precedent-setting ruling which is likely to have major
repercussions in future takeover battles.

They came down hard against the so-called sweetheart options Marathon granted
U.S. Steel to lock in the friendly merger. This is a practice - developed into
a fine art by Marathon's investment bankers, First Boston Corporation - which
has been increasingly used in U.S. takeover battles.

What it amounts to is simply that a company threatened by a hostile takeover
gives a number of significant options, either in shares or hard assets, to the
white knight of its choice. This, Mobil claimed, was illegal, unfair and
clearly not in the best interest of shareholders because it prevented an open
auction. The courts agreed with Mobil and as a result future takeover battles
are likely to become far more open bidding contests.

But even though the general view is that the lid has been placed on future
takeovers involving big oil companies, Mobil remains a dark and unpredictable
horse in the oil industry. No one is prepared to place their bets that Mobil
will not look at some other company. Already the names of Superior Oil,
Louisiana Land and Exploration, Getty Oil and Cities Service are being
mentioned. But this time, Mobil will probably attempt a friendly strategy
rather than try to force the issue as it has done unsuccessfully in the past two
years.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1276 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Troubled AMI cuts wages and jobs

BYLINE: By Our Financial Staff

SECTION: SECTION II; Companies and Markets; Pg. 15

LENGTH: 184 words

AM INTERNATIONAL, the troubled U.S. office equipment maker, has cut the wages of
all its domestic employees by 8 per cent in an attempt to conserve its cash
flow. It also has taken steps to reduce its workforce.

The company, which ran up a $245m loss for its July 31 financial year, said the
cut in wages was expected to continue until April 30. It plans to cut wages of
its overseas employees by January 31, although it said it would review the
position before April 30 to see if it could reduce the scale of the cuts in pay
or even eliminate them.

AM plans to cut its workforce of 17,000 by 5 per cent and said this, combined
with the pay reductions, would save it $24m in the next 12 months.

The company said that if it made "satisfactory progress" on resolving its
financial problems it would seek to reimburse employees on its payroll at the
end of this year for the wage cuts.

AM, formerly Addressograph Multigraph, recently won an easing of the terms on a
$109m revolving credit agreement.

Under this plan, AM can retain the first $15m from the sale of its divisions.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1277 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

MGM first-quarter earnings up sharply

BYLINE: BY OUR FINANCIAL STAFF

SECTION: SECTION II; Companies and Markets; Pg. 15

LENGTH: 316 words

EARNINGS have risen sharply in the first quarter at Metro-Goldwyn-Mayer Film,
but the company warns that the second quarter could be "severely impacted" if
there is no upturn in the currently depressed gross takings at U.S. cinema box
offices.

But Mr Frank Rosenfelt, chairman, said: "I am not unduly concerned since I
believe the situation is a temporary one."

At the end of the first quarter, net earnings at MGM Film, which was set up in
1980 when the former Metro-Goldwyn-Mayer group was split up into hotel/casinos
and film entertainments, have jumped from $5.6m to $9.8m or 20 cents a share, on
sales of $208.4m against $33.7m. But this year's figures take in an unspecified
contribution from United Artists Corporation, acquired for $380m last year.

Mr Rosenfelt blamed the weak state of the U.S. box office on recent strikes in
the industry and on "other labour problems" in the economy.

MGM Film plans to release 24 films in calendar 1982 including films of United
Artists. The company said its expanded film and television release schedule for
1982 is generating significant tax credits which will result in income tax
benefits.

MGM Film arranged a $200m line of credit in connection with its purchase of
United Artists and shareholders were told last year that its debts, which then
included $179m of the United Artists financing, were tied to prime rate in the
shape of short-term bank loans.

* Joy Manufacturing, the U.S. mining equipment manufacturer, expects profits for
its current year to exceed the record $87.8m achieved last year.

Within the improvement in its fiscal year to September, Joy is expecting a
strong first quarter compared with last year's $15.7m profit. Joy's confidence
for the year is based on its almost $600m backlog of orders, although it has
doubts about 1983 when the current softness in orders could be reflected in
sales.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1278 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

G and W lifts holding in Libby-Owens

BYLINE: By Our Financial Staff

SECTION: SECTION II; Companies and Markets; Pg. 15

LENGTH: 92 words

GULF AND Western Industries, the fast-expanding conglomerate which includes
Paramount Pictures and has investments in a wide range of U.S. companies, has
boosted its stake in Libby-Owens-Ford to 23.8 per cent. Libby-Owens supplies
more than two-thirds of General Motor's glass requirements.

G and W said it acquired 125,800 shares between December 8 and January 4 for
about $3m, bringing its stake to 2.65m shares.

Last month, it is now disclosed, G and W increased its holding of common shares
in Brunswick Corporation to 3.15m shares.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1279 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Prudential in $500m property deal

BYLINE: By Our Financial Staff

SECTION: SECTION II; Companies and Markets; Pg. 15

LENGTH: 92 words

URBAN INVESTMENT and Development Company, a unit of Aetna Life and Casualty
Company, and Miller-Davis Company, of Denver, have sold a major portion of their
joint partnership interest in properties in Denver, Colorado, to Prudential
Insurance Company of America for more than $500m. The price consisted of cash
and existing mortgages on the property.

The transactions resulted in an after-tax profit to Aetna of about $30m in the
fourth quarter of 1981 and will result in a further after-tax profit of between
$26m and $29m in subsequent years.

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1280 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Boost for French prestige

BYLINE: By Alan Friedman in London

SECTION: SECTION II; Companies and Markets; Eurobonds; Pg. 15

LENGTH: 336 words

THE PRESTIGE of France in the international capital market received a major
boost yesterday as the $250m five-year floating rate note offer for Banque
Francaise du Commerce Exterieur (BFCE) was increased to $400m on the back of
strong demand.

The success of this issue - thought to be the largest ever floating rate note -
was seen by bankers last night as dispelling lingering doubts expressed about
the credit worthiness of France and French institutions since President
Mitterrand took power.

The BFCE paper carries a margin of 1/4 per cent above the mean of the bid and
offer of six-month Eurodollar rates. The minimum coupon is 5 1/4 per cent.
Lead manager is Credit Suisse First Boston.

One reason why the BFCE issue is going so well is the current lack of
competition from other issues. In addition, the fixed-rate Eurobond market is
in some difficulty as dealers try to find an appropriate trading level.

Prices of fixed-interest Eurodollar bonds continued to falter yesterday as
European bankers looked to the New York market for signals of an upturn. The
long U.S. Treasury bond market has dropped between 3 and 4 points this week and
Federal funds were yesterday 1/2 per cent higher at 12 3/8 per cent.

The Swiss franc foreign bond market followed the lead of New York and prices
were 1/4 point weaker in moderate trading. The domestic Swiss franc bond market
remained stable, but foreign bond prices declined following the weakening of the
Swiss currency against the dollar and some selling.

The D-Mark foreign bond market was the only capital market in Europe to shrug
off the weakening trend, with prices quite stable and a healthy outlook reported
by traders for the next few days.

In the Japanese convertible bond sector, an $80m 15-year issue is expected today
for Nippon Electric. Daiwa Securities is managing the offer.

Nomura Securities said last night that it would be managing a Yen 20bn 12-year
samurai bond offer for Dow Chemical, the U.S. corporation.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1281 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

UK discount house loss

BYLINE: BY WILLIAM HALL IN LONDON

SECTION: SECTION II; Companies and Markets; Pg. 15

LENGTH: 113 words

SMITH ST AUBYN, one of the UK's most successful houses in the discount markets
in recent years, has lost around £15m ($28.5m) on its gilt-edged portfolio, with
the result that both its inner and published reserves "have been extinguished."

The news shook the discount market which has traditionally had a close
relationship with the Bank of England, which uses it as the main focus of its
money market operations.

At the same time, Smith St Aubyn has announced a one for one rights issue at 25p
per share to raise £2.7m. The final dividend for the year to April 5, 1982 has
been passed and the company is unlikely to be able to pay its preference share
dividends.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1282 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Japan to limit new issues

BYLINE: By Our Euromarkets Staff

SECTION: SECTION II; Companies and Markets; Pg. 15

LENGTH: 86 words

THE VOLUME of new Japanese convertible bond issues in the Eurodollar market is
likely to be less than $800m in the first quarter of this year.

Although the new informal system of self-regulation among Japanese securities
houses is not scheduled to begin until April, the securities companies have
decided to agree among themselves on the flow of new issues for the January to
March period.

The $800m in volume will be made up of fewer than 20 issues, several of which
are expected in the next fortnight.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1283 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Buehrmann-Tetterode to write off Belgium unit

BYLINE: BY CHARLES BATCHELOR IN AMSTERDAM

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 16

LENGTH: 367 words

DUTCH PAPER and packaging group, Buehrmann-Tetterode, is to write-off its
investment in a Belgian subsidiary with the result that it will barely make a
profit in 1981.

BT will set the full Fl 35m ($14m) after-tax write-down against last year's
result and will therefore make a profit of only Fl 2m, compared with Fl 46.2m in
1980.

This sharp reversal has led the company to reduce its dividend to Fl 2.40 per
share from Fl 5.60 the year before. BT has drawn partly on retained profits to
meet the Fl 2.40 payment.

The Amsterdam Stock Exchange suspended trading in BT's shares when trading
opened yesterday. They closed at Fl 35.70 on Wednesday.

BT initially expected that its Belgian subsidiary, Papeteries de
Mont-Saint-Guibert (MSG), would break even in 1981 after several years of
losses. But demand for the company's high quality board products collapsed in
September as customers switched to lower priced alternatives. MSG has
insufficient capacity to make the cheaper products profitable.

Energy costs also rose sharply and on the basis of its own studies and the
advice of McKinsey, the U.S. consulting group, decided to write-off its
investment to avoid sizeable continuing losses. Talks have begun with the
Belgian Government to find a solution. The plant is expected to be shut.

BT succeeded in reducing MSB's losses after it was acquired in 1976 but the
cumulative total is now about Fl 100m. MSG's plant south-east of Brussels
specialises in kraft papers and liners for the corrugated board industry. BT
recently carried out a substantial investment programme to modernise MSG's
equipment.

This is the second time that BT has revised its profits forecast for 1981. It
initially forecast profits unchanged at Fl 46.2m net in August but in November
this forecast was downgraded.

BT is the most widely diversified of the Dutch paper and board manufacturers
with interest in printing machinery and trading. It has up to now survived the
industry's recession better than its Dutch competitors.

It expanded rapidly in the 1970s buying a large number of companies throughout
Europe and increasing turnover from Fl 636m in 1970 to Fl 2.6bn in 1980.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1284 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Lauro line goes into partial receivership

BYLINE: By James Buxton in Rome

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 16

LENGTH: 196 words

AN OFFICIAL commissioner is to be appointed to control the affairs of the Lauro
shipping line, the Naples-based concern which is in serious financial
difficulties.

This solution, a form of partial receivership, has been decided by the lines'
creditor banks. They rejected the company proposal for the setting up of an
external management committee which would run the company as not being
sufficiently legally watertight. The banks will be included, with the company,
in the new administration.

In return for the appointment of a commissioner the nine ships of the Lauro line
which are currently impounded by creditors, two of them in foreign ports, will
be released. Income from charters which the creditor banks have taken over will
be returned to the company to enable it to solve its immediate cash-flow
problems.

The object of the settlement agreed for the shipping line is to allow it to
resume earning income from lucrative charters while its financial affairs are
sorted out.

The line, which has about 20 ships, is in financial crisis because of the heavy
interest charges, said to amount to L25bn a year on short-term debt of L100bn
($83m).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

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Financial Times (London,England)

January 8, 1982, Friday

Norwegian cement group boosts 1981 earnings

BYLINE: BY OUR OSLO CORRESPONDENT

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 16

LENGTH: 200 words

NORCEM, the Norwegian cement and building materiales group which also has
offshore interests, increased turnover and profits in 1981 and expects the
improvement to continue this year.

Group profits for 1981 are estimated at NKr 40m to NKr 45m compared with NKr 10m
in 1980, when Norcem passed its dividend. In addition, for the latest year
Norcem has credited extraordinary income -- including profits from share sales
-- totalling about NKr 30m net.

Turnover reached NKr 3.1bn, a gain of 16 per cent on a year earlier.

The cement division reduced capacity by 600,000 tonnes in 1981, following a 3
per cent fall in domestic deliveries to 1.6m tonnes. Exports of cement and
clinker reached 3.9m tonnes. The switch from oil to coalfiring at the three
cement plants permitted "significant" savings on operating costs.

A Saudi Arabian company in which Norcem has a 37.5 per cent stake reported "very
positive" results in 1981.

The group's offshore division continued to grow, with Morco, an oil well
drilling subsidiary, boosting turnover to NKr 150m from NKr 118m. Anchor
Drilling Fluids, which provides engineering services, increased turnover to NKr
100m from NKr 70m.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1286 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Danish sugar group sees little change

BYLINE: By Hilary Barnes in Copenhagen

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 16

LENGTH: 77 words

DE DANSKE Sukkerfabrikker expects earnings for the current year to April 30 to
be in line with last year's result, when the group reported a profit before
allocations and tax of DKr 337m ($46m).

It said in an interim report that the sugar beet harvest increased from 371,000
tonnes to 415,000 tonnes. Production from 265,000 tonnes would be sold to the
EEC and a "reasonable economic return" was expected on the sale of surplus sugar
to other countries.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1287 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Viscosuisse sales up

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 16

LENGTH: 49 words

Turnover of Viscosuisse, Switzerland's leading producer of synthetic fibres,
last year exceeded both the 1980 figure of SwFr 425m ($237m) and the budget
estimate for 1981. But the Rhone-Poulenc subsidiary failed to match 1980's
operating profits. Net earnings last year came to SwFr 5.3m.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1288 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

EOE experiences sharp increase in activity

BYLINE: BY OUR AMSTERDAM CORRESPONDENT

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 16

LENGTH: 193 words

BUSINESS on the European Option Exchange (EOE) rose sharply during 1981 and
turnover exceeded 1m contracts a year.

Turnover in all option types rose 47 per cent to 1.04m. Average daily turnover
increased to 4,125 options from 2,817 in 1980. This is still well below the
7,000 contracts a day the EOE originally hoped to reach within its first year of
trading. But costs have been cut, and the exchange now claims to be on the
point of breaking even.

Dutch stock options continued to dominate the market accounting for 721,877
"calls," conferring the right to buy the underlying share, and 236,408 "puts,"
giving the right to sell. Philips accounted for a third of the Dutch option
business.

Turnover of German options moe than doubled to 10,438 but trading in U.S.
options was halved to 16,959 contracts. Belgian and French options continued to
account for only a small part of business, totalling 677 and 86 contracts
respectively.

Turnover in gold options, introduced in April, amounted to 46,478 contracts
while trading in the three options on Dutch State bonds amounted to 10,658
during the 26 days in which they were listed.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1289 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Sharp cut in jobs at Sigma Motor

BYLINE: By Bernard Simon in Johannesburg

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 214 words

SIGMA MOTOR, one of South Africa's largest vehicle manufacturers, has made large
cuts and layoffs in its workforce amid signs of a difficult year ahead for the
South African motor industry. Chrysler of the U.S. is a minority shareholder in
Sigma, and Anglo American Corporation owns 75 per cent of the company.

About 500 Sigma workers have lost their jobs and another 348 temporarily laid
off until the end of January. The layoffs are the result of higher productivity
and a decision to halt manufacture of components, Sigma said.

However, some of the cuts are reliably understood to be connected with a sharp
drop in the company's market share over the past year. Sigma assembles Mazda,
Peugeot and Citroen cars and a number of commercial vehicles.

Its share of the car market slipped from 21.1 per cent in December, 1980, to
around 15 per cent in October and November last year. Sigma's monthly car sales
dropped by almost 1,200 vehicles over this period. Peugeot sales are understood
to have fallen particularly fast.

Sales of passenger cars in South Africa are expected to fall from 300,000 units
last year to around 270,000 this year. Demand for commercial vehicles is likely
to drop further, from about 150,000 in 1981 to little more than 125,000.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1290 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Malaysians set up second trading house on Japanese lines

BYLINE: BY WONG SULONG IN KUALA LUMPUR

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 224 words

MALAYSIA has set up its second multi-national trading agency in les than two
weeks. Called Mattra Corporation, it will have an authorised capital of 250m
ringgit (U.S.$110m) and look for an annual turnover of around U.S.$675m.

Four major Malaysia groups are partners in the Mattra venture. They are Food
Industries of Malaysia (FIMA), Kumpulan Perangsang, United Motor Works and Palmo
Holdings.

The first two are government-owned agencies, involved in food processing and
distribution and tin mining, a heavy machinery and vehicle group UMW and Palmco,
a palm oil producer, are Chinese-controlled publicly listed companies.

The first Malaysian government-approved joint-venture multi-national trading
agency, Nastra, was incorporated last month, with four other major Malaysian
companies taking equity participation in the venture.

Both Nastra and Mattra are based along the lines of the sogo-shosha, Japan's
mammoth trading organisations and they are expected to set up offices in various
world cities to buy and sell a variety of goods.

Apart from Nastra and Mattra, the Government is expected to approve another two
or three similar trading units.

These units are expected to be incorporated in the coming weeks with Sime Darby,
the plantation group and Multi-Purpose Holdings, the Chinese investment group.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1291 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

KL Stock Exchange censures food group

BYLINE: By Our Kuala Lumpur Correspondent

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 168 words

THE KUALA LUMPUR Stock Exchange has censured a leading drinks and food
manufacturer, Yeo Hiap Seng (Malaysia), for its profit forecast.

The company disclosed recently that its pre-tax profit for the year ended
September fell by 57 per cent to 4.6m ringgit (US$2m) on a turnover which rose
by almose 20 per cent to 120m ringgit.

In it letter, the exchange pointed out that YHS had a pre-tax profit of 3.6m
ringgit for the first six months ended March. In June, the company announced a
rights issue of one-for-two at 2 ringgit each, and directors then predicted that
te company's full year earnings would not be less than 10m ringgit.

The exchange said when this forecast was made, YHS was already entering its
final quarter, and the exchange asked how directors could make such a forecast
which then fell short of the actual earnings by more than 5.5m ringgit.

Under its rules, the exchange can suspend the company if the reply is not
satisfactory. However, such action is unlikely.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1292 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Malaysia Building Society plans increase in capital

BYLINE: BY OUR KUALA LUMPUR CORRESPONDENT

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 155 words

A SCRIP and rights issue is announced by Malaysia Building Society Berhad
(MBSB), the leading Malaysian housing financier. The increase in capital is to
support its planned expansion in operations.

The company, in which the Commonwealth Development Corporation, a UK Government
agency, has a 23 per cent stake, said it would make a one-for-three scrip issue
and a one-for-three rights issue to raise its paid-up capital from 46m ringgit
to 76.6m ringgit (U.S.$34m).

The rights issue for the 1 ringgit par value shares is priced at 2.9 ringgit,
and will raise 44.4m ringgit.

The increase in the capital base would allow the company to borrow more money
from the Government and its institutions for housing activities. Its borrowings
stood at 640.4m ringgit at December 31, 1980.

For the year ended that date, MBSB made a pre-tax profit of 26m ringgit, and had
total mortgages outstanding of 752.2m ringgit.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1293 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Saga Petrokjemi

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 17

LENGTH: 39 words

EARLY last year Saga Petroleum offered to buy out the minority shareholders in
its Saga Petrokjemi subsidiary. It was wrongly reported yesterday that Saga
Petroleum had offered to sell its Petrokjemi stake to minority holders.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1294 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Barings Far East posts

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
International Appointments; Pg. 17

LENGTH: 56 words

BARING BROTHERS ASIA, Hong Kong, has appointed Mr Peter G. R. Dodds as deputy
managing director, Mr Richard C. Kirby an assistant director in Hong Kong and Mr
Lee Chee Kuon a manager in Singapore. Mr John E. Heskett, an executive director
in Hong Kong, will be returning to Baring Brothers and Co in London at the end
of January.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1295 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
International Appointments; Pg. 17

LENGTH: 90 words

Mr Machiel Termuelen, a Dutchman, has been named assistant to the managing
director of MONTEDIPE, a Montedison company based in Milan. In addition to
developing and implementing medium and long-term strategies for the purchasing
and processing of raw materials and product selling, Mr Termuelen will keep
contact between the international petroleum and petrochemical industries and
Montedipe, which within the Montedison Group is in charge of petroleum refining,
production and sales of basic chemicals and petrochemical intermediates.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1296 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
International Appointments; Pg. 17

LENGTH: 46 words

FIRST NATIONAL BOSTON CORPORATION and its principal subsidiary, the First
National Bank of Boston, have elected Mr John G. McElwee a director of the
corporation and the bank. He currently serves as president and director of the
John Hancock Mutual Life Insurance Company.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1297 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
International Appointments; Pg. 17

LENGTH: 29 words

Mr J. Howard Hawke, chairman and chief executive officer of Bache Halsey Stuart
Canada, has been appointed to the board of AERO ENERGY, Canadian-based oil and
gas group.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1298 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
International Appointments; Pg. 17

LENGTH: 20 words

Dr Harold M. Hubbard has been named the permanent director of the SOLAR ENERGY
RESEARCH INSTITUTE, Golden, Colorado.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1299 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
International Appointments; Pg. 17

LENGTH: 123 words

Mr Donald E. Nickelson, president and chief executive officer of Paine Webber
Jackson and Curtis, and Mr John A. Wing, president and chief executive officer
of the Chicago Corporation, have been elected to three-year terms on the CHICAGO
BOARD OPTIONS EXCHANGE board of directors.

Others elected were: Mr Lawrence J. Blum, a market-maker and an incumbent on the
CBOE board who currently serves as chairman of the executive committee, the
exchange's highest elected member position; Mr Robert L. Cruikshank, a
market-maker; Mr Ernest W. Naiditch, a market-maker and an incumbent.

Also elected were three new members of the nominating committee: Mr Daniel S.
Curran, Mr Joseph S Doherty and Mr E. Penny Dolnick, all market-makers.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1300 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
International Appointments; Pg. 17

LENGTH: 25 words

The DONALDSON CORPORATION has appointed Dr Peter E. Horn as managing director
for Europe, located at European headquarters in Leuven, Belgium.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1301 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

£4m hospital work for Sindall

SECTION: SECTION II; Companies and Markets; Contracts; Pg. 17

LENGTH: 53 words

A £4m contract has been awarded to SINDALL CONSTRUCTION by the East Anglian
Regional Health Authority for Phase II of the new District General Hospital at
Great Yarmouth. The architect is McDonald Hamilton and Montefiore. The
contract is due to start on February 1 and should be completed by the end of
1984.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1302 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Contracts; Pg. 17

LENGTH: 77 words

LOGAN COMPANY has won a £580,000 order for a carousel two-way tilting tray
sortation system for Freemans, the mail order company. The system will be
installed at Freemans' distribution centre, Peterborough. Merchandise is
distributed to 108 unload stations throughout the 120,000 square metre two-level
storage warehouse. The tilt-tray sorting machine has a through-put capacity of
9,000 units per hour, and sorting speed is 102 metres per minute.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1303 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Contracts; Pg. 17

LENGTH: 72 words

Lawson, Action-based building contractor, is to build a block of four-bedroom
town houses on the site of the old St James Church in Fulham, West London. The
contract, worth about £360,000, was awarded by Site Improvements
(Developments).Another project worth £130,000 is to carry out an extensive
refurbishment of 7 Albermarle Street, Piccadilly, a building listed (Grade II)
by the Historic Buildings Committee of the GLC.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1304 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Contracts; Pg. 17

LENGTH: 215 words

JACKSON ASSOCIATES, Chichester, computer software and bureau company, has won a
contract to supply Charles Letts and Co., diary, travel and educational
publishers, with a range of computer services over the next three years. The
agreement, which could be worth £300,000 per annum, will cover on-line computer
bureau processing, the design of Letts' new on-line interactive system,
facilities management in respect of the London computer operation, together with
some consultancy services. The main applications that Jackson's team will
develop deal with on-line order entry, sales ledger and order statistics.
Letts' London office will be linked to Jackson Associates' Chichester computer
installation, which consists of ICL 2946 equipment with data entry and printing
facilities at Letts' office.

International Computers has awarded Jackson Associates a contract to design and
develop an investment management and stockbroker administration package --
Investmaster. Both modules are interactive and on-line providing brokers with
up-to-the-minute data on such items as valuations, stock situations, client
transactions, capital gains assessments, commission analyses and contract note
production. In addition, there are a full range of stockbroker accounting
facilities.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1305 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Contracts; Pg. 17

LENGTH: 51 words

IBR MICROCOMPUTERS, has the distribution rights on the 8000 Series version of
the MicroModeller financial management system. This follows an exclusive
agreement between IBR and the developer of MicroModeller, Intelligence (UK).
The first batch of systems ordered by IBR has a retail value of £75,000.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1306 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Contracts; Pg. 17

LENGTH: 137 words

More than £3m has been won by companies in the LOVELL CONSTRUCTION GROUP, the
largest scheme going to Farrow which has a £1.4m contract to build a two-storey
hospital at Brentwood, Essex for Seltahart Clinics.

At Bisley, Y. J. Lovell (Southern) is providing a £575,000 2,532 square metre
factory for F. C. Brown (Steel Equipment). This will have an orthodox steel
portal frame supporting a steel sandwich roof. The same company has won a
£500,000 plus award to erect 12 houses and 18 flats for Brook Street Housing
Association at Chertsey, Surrey.

Other jobs are a telephone exchange at Burgess Hill, West Sussex for British
Telecom (£335,600); a three-storey office building in Winchester for ICFC
Developments (£136,000); and a new car park at Salford Hospital, Greater
Manchester, worth £72,600.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1307 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Contracts; Pg. 17

LENGTH: 76 words

The ENERGY EQUIPMENT COMPANY, which became part of the Petrofina Group last
year, has secured a £2.7m contract with the British Sugar Corporation for the
plant at Bardney, Lincolnshire. The contract is to design, supply, deliver,
instal and commission all ancillary equipment associated with a 130,000 lb/hr
steam boiler working at 900 psi pressure. Equipment includes instrumentation,
mechanical services, tankage, electrical works and insulation.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1308 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Contracts; Pg. 17

LENGTH: 57 words

G. E. WALLIS AND SONS has been awarded a £1m contract for alterations to the Old
Post Office Savings Bank building at Blythe Road, London W14. Wallis has also
been successful in gaining another PSA contract worth £350,000 for the
re-roofing and refurbishment of the Neptune Hall at the National Maritime
Museum, Park Row, Greenwich.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1309 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Contracts; Pg. 17

LENGTH: 144 words

Orders valued at £650,000 have been won in the Republic of the Maldives and the
Ivory Coast by the BRITISH AIRPORT EQUIPMENT GROUP, Leeds, BAE is a consortium
of UK manufacturers in the airports market formed six years ago to win the
largest possible share for the UK of the rapidly expanding market for airport
equipment in "third world" airlines. It has recently been restructured to trade
as a limited company and is now actively seeking additional UK members to extend
further the range of capabilities it offers to developing airports. The Maldives
order is for maintenance equipment valued at £500,000 for the recently opened
Male International Airport. The equipment includes a security system, two fuel
bowsers and a runway sweeper. A first order from Air Ivoire, the Ivory Coast
domestic airline, is for a £100,000 ground support package.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1310 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Contracts; Pg. 17

LENGTH: 50 words

TWINLOCK has been awarded the £22,000 contract for filing for the new British
Airports Authority offices at Gatwick Airport London, due to be opened next
month. The contract is part of a £500,000 order for furniture for the new
building, which is being handled by PLUMB CONTRACTS, Coventry.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1311 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Contracts; Pg. 17

LENGTH: 204 words

With the aid of an English Industrial Estates government grant, Lucas Aerospace
is constructing a factory in Bradford for the manufacture of components for the
aerospace and aircraft industries, and has appointed a Coventry-based company,
PMD CHEMICALS to act as consultant engineers for the metal finishing facility,
which will occupy 2,500 sq ft of the 80,000 sq ft total factory area. PMD
equipment represents more than half the value of the $400,000 order for the
metal finishing facility and comprises 13 modular plating lines. Other companies
engaged by PMD to complete the contract are Plastic Construction, Birmingham,
who are supplying the fume extraction system; Brightside Mechanical and
Electrical Services Group, Birmingham, who are installing the air replacement
system; Waste Treatment and Recovery, Birmingham, who are manufacturing the
effluent treatment plant; and Lamacrest (Contracts), Harrogate, who are laying
the acid-resistant flooring to the plating shop and effluent treatment areas.
All additional ancillary items will be provided by PMD, ranging from vapour
blasting and de-embrittlement ovens through to pH meters and hotplates, to give
Lucas Aerospace a complete, turnkey package.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1312 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

London and Northern win £3.4m order

SECTION: SECTION II; Companies and Markets; Contracts; Pg. 17

LENGTH: 234 words

LONDON AND NORTHERN GROUP companies in Scotland and North West England have been
awarded contracts worth £3.4m.

A. Farquhar (Builders) has work in the Aberdeen area at £2.14m. A garage and
showroom will be constructed for John Clark BMW (Special Cars) for £220,000 and
a sports and leisure complex for Occidental of Britain Inc., at Bridge of Don in
a £500,000 contract. Alteration work valued at £150,000 takes place at Albyn
Terrace for Leigh Estates and for Shell UK a workshop and the second phase of
groundwork for office extensions totalling £550,000. In addition Farquhar's has
commenced the construction of 40,000 sq ft of warehouse accommodation at
Palmerston Road, Aberdeen at a cost of £740,000.

In North West England, Border Engineering Contractors, Whitehaven, has been
awarded contracts valued at £1.25m in a £736,832 contract for British Nuclear
Fuels, to construct the graphite machining facility (Phase II) at Lillyhall,
near Workington. At Egremont a contract to re-clad and undertake internal
alterations at Wyndham School for Cumbria County Council has been awarded at
£367,077 and Border will also carry out alterations and roofing at Ullswater
School in Penrith for £61,259. William Huddleston and Sons, Border's subsidiary
company in Morecambe, has a contract for Phase I in the centralisation of bus
depots at Heysham Road, Lancaster at £86,235.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1313 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Little change midway at Electronic Rentals

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 572 words

TAXABLE PROFITS of Electronic Rentals Group were little changed at £7.39m for
the half year ended September 30 1981 compared with £7.42m, on turnover of
£90.91m, against £90.12m.

The interim dividend is maintained at 1.1667p net per 25p share -- last year's
final payment was 3.143p paid from a pre-tax surplus of £14.74m (£12.22m).

The directors say that trading conditions continued to be "exceedingly
difficult," particularly in the home market. UK rental side stood still as
colour TV income reductions balance video recorders income growth, which was
disappointing mainly because of supply shortages.

The introduction of a second major video recorder supply source last autumn was
well received in the market place, the directors state, and with an assurance of
supplies in 1982, "we expect to gain market share."

As most of the exceptional costs to be incurred in 1981-82 were accounted for in
the first six months the benefits arising from rationalisation programmes are
now beginning to show -- exceptional debits were £1.46m (£67,000) mainly
comprising redundancy and factory relocation costs.

In common with the rest of the UK shoe industry, Gola Sports continues to find
trading difficult and further reorganisation measures are being taken. The
directors say that throughout the group, operational costs continue to be
carefully monitored and they see signs of a growth in rental income resulting
from increased supplies of video recorders.

A divisional analysis of turnover and £14.03m (£14.81m) profit, before interest
and exceptional items, shows: rental -- UK £59.02m (£59.01m) and £11.13m
(£12.6m); overseas £14.76m (£11.57m) and £2.33m (£1.77m); retail £3.27m (£3.81m)
and £166,000 (£142,000); camping and leisure £13.42m (£15.17m) and £74,000
(£66,000 loss); property £53,000 (£51,000) and £382,000 (£372,000);
miscellaneous £389,000 (£516,000) and £39,000 loss (£92,000); holding company
£10,000 loss (£77,000 profit).

The camping and leisure figures for the 1981 six months exclude those relating
to the discontinuing activities of Dudes and Europleasure whereas the
comparative period included turnover of £3.1m and a loss of £623,000.

Above the line, interest charges were down from £7.32m to £5.18m as a result of
reduced levels of borrowings and a marginally lower average interest rate, but
these were offset by the increased exceptional items, and higher depreciation of
£24.17m (£22.62m).

After much higher tax of £3.78m, against £896,000, minority interests, £13,000
(£13,000 credit), and an extraordinary credit of £420,000 (£160,000 debit), the
available balance came through down from £6.38m to £4.02m. The dividend cost is
£2.1m (£2.05m).

Basic earnings per share, after tax and minorities, were 2p (3.8p). Net cash
flow per share increased by 0.3p to 17.1p.

On a CCA basis the pre-tax figure for the first half is reduced to £6.85m
(£6.46m).
Half year
1981 1980
£000 £000
Turnover 90,911 90,123
Trading surplus 38,202 37,123
Depreciation 24,169 22,617
Profit 14,033 14,806
Interest 5,181 7,321
Exceptional debits 1,462 67
Profit before tax 7,390 7,418
Taxation 3,780 896
Net profit 3,610 6,522
Minority debit 13 * 13
Extraord. credit 420 + 160
Profit available 2,095 2,053
To reserves 1,922 4,322

* Credit.

+ Debit.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1314 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

DIVIDENDS ANNOUNCED

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 125 words

Date Corre- Total Total
Current of sponding for last
payment payment div. year year
Asprey int. 15 Jan. 28 15 * - 35 *
Baker's Stores 1 - 0.8 * 1.65 1.32 *
Birmingham Pallet nil - 1.5 nil 2.5
Peter Black int. 1.68 May 1 1.54 - 4.54
City of Lndn Tr 2nd int. 1.1 Feb. 26 1.1 - 4.4
Electronic Rentals 1.17 Feb. 26 1.17 - 4.31
Hickson and Welch 5 Feb. 15 5 7.5 7.5
Rbt. Kitchen Taylor 7 March 31 7 10 10
John Waddington int. nil - 2.5 - 6

* Equivalent after allowing for scrip issue.

+ On capital increased by rights and/or acquisition issues.

Dividends shown pence per share net except where otherwise stated.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1315 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Kwik Save to raise £12.28m

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 264 words

Kwik Save Discount is raising £12.28m gross by way of a rights issue of 6.8m new
10p shares at 180p per share on the basis of one new share for every 10 held on
December 17. In the market the shares fell 8p to 214p.

The £11.9m proceeds are to be used to help finance the continued expansion of
the group, in particular the purchase of stores on a freehold basis.

Sales for the first 16 weeks of the current financial year are up 21.9 per cent
over last time. The directors decline to forecast profit for the year but
undertake to pay dividends on the enlarged capital totalling 6p, compared with
5p in the year to August 1981.

Mr I. F. D. Hill, chairman, says that despite the continuing fierce competition
among major food retailers, the group still has good prospects of maintaining
its profitable expansion in the future, taking into account the many towns in
which the group is not represented.

He also points out that the group has benefited in the past from the provisions
for stock relief. With the easing of inflation, there has been less need to
make purchases of stock ahead of producers' price increases and stocks have
fallen. A relatively small increase in stock purchases would require large sums
of cash.

The new shares will not rank for the final dividend in respect of 1980-81, which
is payable next week. Dealings in the new shares are expected to begin on
January 11 and the final date for acceptances is January 29.

The issue has been underwritten by Singer and Friedlander and brokers are L.
Messel and Co and Tilney and Co.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1316 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Waddington shakes off its losses on withdrawn game

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 760 words

THE WITHDRAWAL by John Waddington of its controversial game, "Bombshell"
resulted in a write-off of £180,000 and this has been included in the figures
for the 28 weeks to October 17 1981. Despite this however, the company has
swung back into profit with figures of £326,000 pre-tax compared with losses of
£1.02m in the corresponding period last year. No interim dividend is being
paid.

"Bombshell," based on the television programme, Dad's Army, was launched at toy
fairs last January and was on general sale in June. The directors say it was
well received by the trade and no complaints were received until the one which
sparked off the Press campaign.

Within two days, the company decided to cease production and promotion.

The board says the company's financial position is strong, but the need for
investment is paramount and in view of the results of the half-year, it has been
decided to pass the interim dividend. Last year's net total was 6p, with the
interim being 2.5p. A recommendation with regard to the final dividend will be
made at the usual time in the light of performance and prospects.

They say the result for the first half should be reviewed against the background
of an increasingly difficult trading environment. The company started the
financial year reasonably well in packaging, printing and games, but sales began
to decline in the late summer. In particular, it is the sales of folding
cartons, and the higher priced games which have suffered with the general
depression.

The games figure for the prior year was affected by provisions of £2.2m for
Videomaster and £755,000 for the U.S., as disclosed in previous statements. In
the current year there has been no significant contribution from either of these
areas, they say.

First half turnover of this packaging and games group, was down from £33.06m to
£24.75m -- the previous year's figure included £7.03m from Valentine Group. The
pre-tax profit was struck after interest charges of £356,000 (£965,000). Tax
took £6,000 against a credit of £3,000, leaving attributable profits of £320,000
(£1.02m loss after minority credits of £5,000). Stated earnings per 25p share
were 4.9p against losses of 16.5p.

The board says the company has nearly doubled its capital expenditure from last
year's low level to maintain its investment in modern, cost-effective machinery.
A rigorous attack on costs at all levels is continuing because the company does
not expect trade to improve for some time.

The result of the second half of the current financial year depends on sales and
margins which, with some exceptions, continue to be unsatisfactory.

Two of the games companies have carried out extensive changes in the half year.
Waddington's House of Games has consolidated its operation in order to improve
efficiency and release a 30,000 sq ft building for rent or sale.

Subbuteo Sports Games, in order to consolidate into one factory from three, has
moved from Kent to the North-east. Once again, efficiency will be improved and
cash is being generated from the sale of buildings.

Sales of the company's plastic containers for carbonated drinks are increasing.
It is funding a development programme aimed at improving productive efficiency
and raising technical specification to meet the requirements of a very large
potential market.

This work, which the board considers to be of great importance for the future,
has depressed the profits of the packaging business.

* comment

Waddington's figures yesterday caused dealers a double take. The shares added
4p yesterday on first confirmation that interim profits had been partly restored
before slipping a net 8p to 86p on the absence of the half-time dividend.
Waddington had hacked at last year's distribution so the ex-ACT saving this time
is a mere £156,000 so far and the outlook for the final is to say the least
obscure. The group's explicit line is that dividend has been sacrificed in the
cause of capital spending which is set to double this year to about £2.6m. But
expenditure at this level should be seen against a £2.4m spend in 1979-80 and a
total of £3m in the year before that. The current cost depreciation (Large is
about £2.6m anyway and the historic balance sheet was in robust health. The
real point, perhaps, is that after bucking the trend for a good while, the
dominant packaging interests have at last succumbed to the recession,
particularly as it affects the confectionery trade, and the prospects remain
very gloomy.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1317 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Birmingham Pallet runs into loss

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 136 words

A PRE-TAX loss of £102,311, compared with a profit of £81,299, is reported by
Birmingham Pallet Group for the year to October 31 1981 and the final dividend,
like the interim, is being omitted -- a total of 2.5p net was paid for 1979/80.

After six months taxable profits had declined to £14,000 (£25,000). The
directors said it was "impossible" to forecast the outturn for the year.

Full year turnover of the group, which is engaged in light engineering, was
lower at £2.78m, against £3.67m.

After tax credits of £100,543 (£9,583) and extraordinary credits of £29,880
(nil), being a profit on the sale of a freehold property, there was an
attributable profit of £28,112 (£90,882).

Stated loss per 10p share was 0.2p (8.9p earnings). On a CCA basis the pre-tax
loss was £164,500.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1318 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Good start for Fredk. Cooper

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 106 words

In his annual statement Mr F. R. Cooper, the chairman of Frederick Cooper
(Holdings), says the current year has started "very well" with the first
quarter's trading producing profits and that he feels sure total profits earned
this year will allow the company to maintain its dividend and that "it will be
well covered."

He says the current year will be one of expansion with consideration being given
to the opening of a new factory principally in connection with horse shoe nails.

Although this will be expensive the chairman says finances have been carefully
planned and the scheme is well within the group's capability.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1319 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

FOREIGN AND COLONIAL INV.

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 41 words

At December 31 1981 unsecured currency loans of the Foreign And Colonial
Investment Trust Company, which continue to be on a short-term basis, totalled
US$34.5m and £13.75m. Since that date a borrowing of $18.5m has been repaid in
full.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1320 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Toye subsidiary bought out

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 238 words

Toye and Co., the craft industries group, is selling the persistently
disappointing precious metals giftware subsidiary, Taylor Maid (Consumer
Marketing), to its management.

The main board director responsible for the Nuneaton-based offshoot, Mr R. H.
Bennett, has formed a consortium with three members of the subsidiary's staff to
form a new company, Brentcastle, which will buy Taylor Maid from Toye.

The consideration will equal the book value of its stocks under the terms of an
agreement reach on December 23.

Brentcastle, through a subsequent agreement dated January 4 this year, has a
liability to the parent company for the stock, with a book value of £76,377 held
by it at that date. Toye is to receive a royalty of 1 per cent of Brentcastle's
annual sales for three years from July 1, subject to a maximum of £25,000.

Taylor Maid has resisted recent management efforts to pull it back into profits.
Suffering the effects of violent fluctuations in bullion prices, the cost of
financing stocks on overdraft and unpredictably dull demand late in the year,
the subsidiary lost £265,000 in 1980.

The autumn and Christmas trade again failed to materialise last year and Taylor
Maid lost another £125,000 or so "before provisions against possible
write-offs."

It had net liabilities of £32,000 at the end of 1980, but this buyout eliminates
the provision for deferred tax of £500,000.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1321 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

TRIDENT GENERAL

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 43 words

The paid-up capital of Trident General has been increased from £5m to £9m, to
provide further underwriting capacity as an independent and flexible market for
professional intermediaries. Trident General is a member of the General
Reinsurance Group.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1322 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Asset Special Situations at a discount

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 69 words

The shares in Asset Special Situations Trust placed at 30p have started trading
at a discount. Yesterday they closed at 29 1/2p.

The company raised £3m by placing 10m shares. Its investment policy is geared
towards recovery stocks and special situations including investments in private
companies wishing to come to the Unlisted Securities Market.

Brokers to the issue were Smith Keen Cutler.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1323 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

JOHN BROWN

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 25 words

John Brown and Co has completed the acquisition for $44.4m of Olofsson Corp, a
privatelyheld machine tool manufacturer based in Lansing, Michigan.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1324 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Pawson calls in receiver

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 212 words

W. L. Pawson, the clothing group which takes in Silhouette lingerie, has gone
into receivership. The board, headed by Mr Stanley Wootliff, announced
yesterday that it had requested the debenture holders, Barclays Bank and
Charterhouse Japhet, to appoint Mr W. G. Mackey and Mr N. J. Hamilton of
accountants Ernst and Whinney as joint Receivers and Managers.

The joint Receivers said that they intended to continue trading while an
investigation is carried out. They also hoped to dispose of many of the group's
operations as going concerns.

The search for buyers for all, or part, of the menswear and ladieswear
manufacturer and retailer, has been going on since the middle of November when
the group revealed that it had suffered a substantial first-half loss in the
financial year which ends next month. tThe shares were suspended at 7p, at the
group's request, which gave Pawson a stock market value of £840,000.
Charterhouse Japhet holds 6.26 per cent of the equity.

The board blamed sharply depressed demand in many of its operations for the
planned disposal programme. After severe retrenchment last year, the group had
been predicting a return to profits, but volume subsequently fell further and
orders from major customers were deferred.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1325 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Lockwoods marketing

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 92 words

Princes Foods, a wholly owned subsidiary of the Italian group, Buitoni, is
assuming sales and marketing responsibility for all produce of Lockwoods Foods
in the UK and Channel Islands.

Lockwoods went into receivership last March and the major part of its UK canning
and soft drink business was acquired by Hillsdown Foods, a private group, in
July. Princes distributes imported canned fish, fruit and vegetables.

Full plans relating to the long-term operation of the agreement between
Lockwoods and Princes are still under development.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1326 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Asprey surges to £2m midway

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 466 words

FOR THE half year ended September 30 1981, pre-tax profits of Asprey, the
jeweller, whose shares are dealt on the USM, have reached £2.13m from turnover
of £12.17m.

And the directors believe that the outcome for the year will be satisfactory,
although elements of traditional business which are normally attributable to the
second half have fallen into the first six months of the current year. "Trading
prospects remain good and with the current expansion at home and overseas, we
look forward to the future with confidence," they state.

In the comparative six months to September 30 1980 the company made a profit of
£784,000 from turnover of £6.17m. But shareholders are reminded that the period
was affected adversely by the diversion of management effort, mainly in
successfully defending a takeover bid from Alfred Dunhill.

The interim dividend for the half year is maintained effectively at 15p. For
the year 1980-81 the company paid an effective total of 35p from profits of
£4.13m. The final dividend for the current year will be determined in the light
of results, and is likely to be recommended in August.

After tax of £870,000 (£300,000) and extraordinary debits of £181,000 (£60,000)
the available balance came out at £1.08m (£424,000). After dividends of
£306,000, the retained figure is £776,000 (£118,000). The extraordinary items
represent costs of obtaining the introduction to the USM and the development of
new ventures in London and New York. Earnings are shown at 62.85p (23.9p).

As well as the jewellery side, Asprey is involved in interior decorating,
furniture upholstering, curtain-making, bookbinding, and the restoration and
repair of antique furniture and woodwork.

* comment

Asprey has celebrated its placing on the USM by returning almost trebled interim
pre-tax profits. The comparable figure was depressed by the costs of the
successful effort to fight off the Dunhill bid. As befits a jeweller to the
Queen, sales were boosted by the Royal Wedding boom. The new franchised shop in
Hong Kong, which opened in October, should bring in more permanent benefits,
though trading there has been flat of late. Asprey will be opening a wholly
owned shop in New York this October, though plans for expansion in the Gulf seem
to have been shelved. The small interior decorating business, Asprey Interiors,
acquired in 1979, has gained good orders, and is expected to become a major part
of the company's business. Sears Holdings has 20 per cent of the equity. The
interim dividend is held at 15p, but the statement hints at a rise in the final.
Despite October's four-for-one scrip issue, the share is still considered
heavily priced. Yesterday it rose 6 per cent to 875p. Cheaper than a gold
chess set.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1327 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Royal Life success in the UK

SECTION: SECTION II; Companies and Markets; UK Company News; New Life Business;
Pg. 18

LENGTH: 870 words

THE VENTURE in the guaranteed income bond market and the school fees market last
year by Royal Life met with tremendous success. It was mainly responsible for
UK single premiums more than doubling from £21m to £51.2m.

The company, the life and pensions member of the Royal Insurance Group, sold
£20m of income bonds in its special issue made in December, and £10m under its
school fee plan, which started at the end of 1980.

The company had a successful year in 1981 for most of its life and pensions
marketing. New UK annual premiums rose from £22.5m to £24.1m, with individual
life premiums up from £8.7m to £9.4m, thanks to higher mortgage related
business.

The company also had a good year for group life and pensions business, in
contrast to the general trend in the market. New annual premiums advanced 12
per cent to £8.9m, while single premiums were 25 per cent higher at £5.5m. Most
life companies have seen a drop in group pension business because of the
recession, massive redundancies and lower wage settlements.

However, self-employed and individual pension business was mixed with annual
premiums dropping slightly from £5.9m to £5.8m. Single premiums rose by
one-third from £3m to £4.1m.

Total worldwide life and pensions business of Royal saw annual premiums rise 9
per cent to £28.3m and single premiums more than double from £21.9m to £52m.

The Commercial Union Assurance Company also saw an improvement in its UK group
pensions business. New annual premiums advanced from £10.1m to £11.8m and were
mainly responsible for total UK annual premiums improving from £19.1m to £20.6m.
Individual business in the UK fell slightly, with annual premiums of £8.8m
against £9m and single premiums 16 per cent lower at £4.8m. New annual premiums
on UK permanent health insurance were down to £1m from £1.2m.

The worldwide new annual premiums of the CU rose in sterling terms from £39m to
£42.8m, while single premiums almost doubled from £28.6m to £55.1m, the
underlying growth rates allowing for exchange rate fluctuations and the disposal
of the life business in Australia and New Zealand being 6 per cent and 79 per
cent respectively. Single premium business in the Dutch company Delta-Lloyd was
especially strong, with a swing from annual to single premiums in the pensions
sector.

However, Yorkshire - General Life Assurance Company, the life company within the
General Accident Group, reports a pattern of new life in pensions business more
in line with the general UK trend. New annual premiums on ordinary business
improved from £4.1m to £5.5m with good growth in mortgage-related and protection
contracts. But new annual premiums on group pensions declined from £4.5m to
£3.4m.

The company had a successful year for self-employed pensions business, with
annual premiums more than doubled from £900,000 to £2.1m. Total UK new annual
premiums rose from £9.5m to £11m.

UK Single premiums improved nearly 10 per cent to £5.7m, with life premiums
static at £1m. The growth came from group business wich moved from £4.2m to
£4.7m.

New annual premiums on world-wide business were 15 per cent higher at £11.4m
against £9.9m, while single premiums were £6m against £5.3m.

Scottish Equitable Life Assurance Society had an exceptional year in 1981 for
self-employed pension business, with new annual premiums rising from £1.08m to
£4.47m, while self-employed single premiums improved 14 per cent to £4.24m.

The other success story for the company was its marketing of guaranteed income
and growth bonds, which resulted in single premium life business jumping from
£2.98m to £18.8m. The company's annual premium business on ordinary life also
showed good growth, moving ahead from £1.93m to £2.3m, with its link with the
Royal Bank of Scotland boosting mortgage repayment business.

However, group pension business took a knock with annual premiums down from
£11.02m to £9.66m and single premiums 24 per cent lower from £11.26m to £8.61m.

The net result for the company was an advance in new annual premiums from
£14.03m to £16.43m, while single premiums jumped from £17.96m to £31.65m.

A steady mortgage business last year resulted in new life annual premiums of
Provident Life Association of London improving slightly from £2.35m to £2.5m.
The company's launch of a single premium unit-linked plan saw life single
premiums expand from £16,000 to £80,000. But the company saw its group pensions
business decline -- annual premiums fell from £1.04m to £637,000 and single
premiums from £606,000 to £485,000.

High life premiums and lower pensions business is reported for 1981 by the
Scottish Mutual Assurance Society. New life premiums rose 11.6 per cent from
£2.9m to £3.3m, with the sales of protection contracts benefiting from the
special rates quoted for non-smokers.

Pension annual premiums dropped 30 per cent from £5.3m to £3.7m, with group,
executive and self-employed pensions all showing declines. Single premium
business remained static at £6.1m, with a 25 per cent increase in life business,
offset by a corresponding drop in pensions business.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1328 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SPAIN

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 18

LENGTH: 75 words

Price
January 7 % + or -
Banco Bilbao 335
Banco Central 335
Banco Exterior 303
Banco Hispano 325
Banco Ind. Cat. 115
Banco Santander 347
Banco Urquijo 213
Banco Vizcaya 355
Banco Zaragoza 216 -2
Dragados 127 -3
Espanola Zinc 60
Fecsa 58.7
Gal. Preciados 43
Hidrola 64 +0.3
Iberduero 53 +3
Petroleos 89.2 +2.2
Petroliber 101
Sogefisa 40
Telefonica 71 -1
Union Elect. 64.5 -0.5

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1329 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Increased loss at Hollis ESA

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 392 words

A SMALL return to profitability next year is predicted by Mr R. J. Rimington,
chairman of Hollis Bros. and ESA, after taxable losses nearly doubled in the
first six months to September 30 1981. The deficit rose from £1.37m to £2.5m.
There is again no interim dividend.

The reduction in the size of the group and the curtailing of operating costs
suggest that the next six months will see a much reduced loss, he says.

Mr Rimington adds that the adverse trading conditions in the industries the
group trades in were exacerbated by the rationalisation programme. Turnover for
the period plunged by £7.15m to £17.54m.

In the last full year the group, which has holdings in timber importers and
educational equipment manufacturers, made pre-tax losses of £4.82m. The last
dividend was 1.4p in 1980.

The scaling down of trading activities, says Mr Rimington, is a direct result of
the closures and has substantially reduced the level of operating expenses.
Inevitably there has been a further reduction in the workforce, now 1,250.

Interest payments this time fell from £1.36m to £913,000. There was no charge
for tax (£120,000). There was an extraordinary debit of £594,000, compared with
£500,000, which left the group loss after preference dividends sharply higher at
£3.09m, against a previous £1.75m.

* comment

Over the past year Hollis has been shrinking as fast as it can, in the effort to
match dwindling markets. Operations are now concentrated at Stevenage and Hull;
once they were spread over as many as 15 locations. In the first half of the
current year, there were a further 500 redundancies, coupled with expensive
stock liquidations as the London softwood yard was closed. Although there is no
sign of new life in any of Hollis's markets, surgery has at last reached a point
where all divisions are within reach of "normal" trading profits. But gearing
is still an oppressive 100 per cent of depleted net worth, and it was only a
£4.7m property revaluation last March which kept shareholders' funds in balance
with the debt. A below-par share-price of 21p values Hollis at just under £2m.
At these depths there is room for a recovery argument which Industrial Equity
(Pacific), the accumulator of a 20 per cent stake in the summer at 40p or so, is
no doubt nervously rehearsing.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1330 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Baker lifts dividend to 1.65p

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 226 words

AN INCREASE from £620,322 to £752,283 in trading profits is reported by Baker's
Household Stores (Leeds) for the year to September 26 1981, but Mr R. Baker, the
chairman, says the increase for the second half would have been somewhat higher
if it were not for the increased depreciation and opening costs relating to
three new branches.

The company, which now operates 22 self-service stores selling non-food
merchandise, increased its turnover from £4.72m to £5.7m. The final dividend is
effectively raised from 0.8p to 1p for a total of 1.65p net (1.32p adjusted).

Mr Baker says that since the end of the financial year, the three new stores
have produced satisfactory results. Trading in other stores, although keeping
around last year's record figures, is flat and under present conditions, he says
it would not be prudent to forecast further at this time.

The company is continually looking to acquire further branches in which to
expand and a further store was opened in December.

Interest receivable for the year was £210,307 (£175,048). Tax was considerably
higher at £381,530 (£85,717), leaving attributable profits down from £788,702 to
£581,060 -- the previous year's figure included a surplus of £79,049 on the
disposal of fixed assets. Stated earnings per 10p share were lower at 11.62p
against 15.77p.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1331 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Hickson makes sharp recovery

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 424 words

AFTER PLUNGING from £4.4m to £2.21m in the first six months, after charging
£128,000 redundancy and termination costs, taxable profits of Hickson and Welch
(Holdings), chemical manufacturer, recovered sharply in the second half and for
the year as a whole to September 30 1981 finished just £200,000 lower at £6.28m.

In his interim statement Mr T. Harrington, the chairman, warned that with little
likelihood of an early upturn in the chemical sector group results for the year
were expected to be down on those of 1979-80.

Turnover for the year under review declined to £90.87m (£93.3m) and trading
profits came through at £7.64m, compared with £8.23m.

The pre-tax surplus was after lower interest charges of £668,000 (£1.37m) and
redundancy and closure costs which rose from £393,000 to £699,000.

Tax took much the same at £3.17m (£3.23m) and after same-again preference
dividend payments of £6,000 the available balance for ordinary shareholders
emerged at £3.1m (£3.24m).

Stated earnings per 50p share dipped 1p to 16p but a maintained final dividend
of 5p holds the total at 7.5p net.

CCA adjustments reduce the taxable profit to £2.31m (£2.75m) and on the same
basis there was a loss per share of 4.5p (2.5p).

* comment

Hickson and Welch has shared in the good run chemical shares have enjoyed in
recent weeks. Up 12p to 212p yesterday, the shares are higher than at any time
for over two years. The figures are quite a bit better than expected, and
vastly better than the first half. Having fallen 50 per cent short of 1980 at
the interim stage. Hickson did almost enough in the final six months to repair
the damage at the operating level, and has also halved its income gearing. The
main source of improvement in the chemicals business is still overseas, helped
by currency factors, but volumes in the UK have shown some recovery -- more so
in the intermediate agro-chemical and pharmaceutical lines than in pigments or
dyestuffs. Inorganics have remained relatively profitable throughout the
through. Timber preservation is still a growing and increasingly profitable
part of the business, which seems likely to progress further this year. In
chemicals the outlook is still uncertain, clouded particularly by faltering U.S.
demand and by aggressive pricing from European competitors such as Hoechst. But
this result will surely confirm the recent bullish trend in the sector. The 5
per cent yield emphasises that Hickson has kept well abreast of sectoral
re-rating.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1332 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Turnround for New Cavendish

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 188 words

A TURNROUND from pre-tax losses of £2,719 to profits of £70,719 was shown by New
Cavendish Estates for the six months to June 30 1981.

On November 17 1980 New Cavendish Investment's issued share capital was
exchanged for 504,000 new ordinary shares in New Cavendish Estates.

The extraordinary debit of £154,136, say the directors, consists mostly of the
merger costs and includes a provision for diminution in the value of the
investment in the associated company. Last time there was a credit of £5,798.

There was a reduced tax charge of £13,767 compared with £173,087 previously.
The attributable loss was also reduced, from £170,008 to £97,371.

Earnings per ordinary 5p share are given as 7.3p. No comparative figure is
provided for earnings per share because of the merger of interests reflected in
the accounts.

For these accounts, say the directors, the accounting periods of the companies
start on July 20 1980 for NCE and January 1 1980 for NCI. The comparative
figures have been combined, each covering a period of 12 months ended July 19
1980 and December 31 1979 respectively.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1333 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

GIBBS SAGE

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 22 words

Antony Gibbs, Sage has changed its name with the consent to the Department of
Trade to Gibbs Sage effective from January 1.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1334 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Peter Black up in first half

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 300 words

FOR THE half year to October 31 1981 taxable profits of Peter Black Holdings,
footwear and travel goods manufacturer, improved from £1.37m to £1.8m on
turnover higher at £20.41m, compared with £16.7m.

The directors, who consider the results "satisfactory" taking account of the
current trading conditions, are raising the net interim dividend marginally from
1.54p to 1.68p per 25p share -- a final of 3p was paid for 1980-81 from pre-tax
profits of £2.8m.

Stated earnings per share for the six months emerged at 10.8p (8.2p) after tax
of £935,000 (£710,000). Interim dividend payments absorb £134,400 (£123,200).

* comment

Peter Black's decade of steady growth is highlighted by much improved interim
figures, with pre-tax profits 32 per cent up at £1,801,000. The company has
traditionally sold about 25 per cent of output to Marks and Spencer. M and S's
drive towards cheaper footwear has allowed Peter Black to reap further benefits
as its own range is at the bottom end of the market. The international
division, begun in December 1980, continues to grow and enables the company to
complement its home produce with Italian leather footwear. The company is
hoping that its marketing operation for Adidas will benefit from the world cup
finals next year. Margins have been improved on the traditional home
manufacturing front. Having reduced interest payments, Peter Black is
continuing to expand its product range, and is now starting to manufacture
household textile lines. The recent snowy weather will have done no harm to its
new range of Wellington boots. Before the figures this family held share was
trading strongly. Assuming the final is increased by the same 9 per cent as the
interim, the share, down 5p at 211p, yields about 3.4 per cent.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1335 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

RKT picks up in second half and holds payment

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 269 words

AS PREDICTED in the interim statement Robert Kitchen Taylor and Company returned
to profit in the second six months, the pre-tax figure for the period emerging
at £589,000, compared with £286,000.

For the full year, however, to September 30 1981, the taxable surplus was still
well down at £442,000 (£638,000) but a final dividend of 7p (same) maintains the
net total at 10p per 10p share.

Turnover of this knitwear manufacturer, textile merchant and property investor
and dealer, improved from £15.4m to £16.99m.

Interest charges were higher at £609,000 (£371,000) and tax took £130,000
(£297,000 restated).

After minorities of £4,000 (£13,000), extraordinary credits of £335,000
(£297,000 debits), distributable reserves as restated brought forward £877,000
(£1.2m) and currency adjustments of £17,000 this time the attributable balance
emerged at £1.54m, against £1.25m, out of which dividend payments absorb
£389,000 (£376,000).

On a CCA basis pre-tax profits are shown as down from £407,000 to £280,000.

Although conditions in the textile trade remained dull the group's textile
operations returned to profit in the second half of the year, as anticipated,
and the present year has started "satisfactorily."

The property sector progressed well although no significant realisations of the
trading stock took place in the second half. Planning restrictions on the
office use of the Chart Street property have now been removed and the directors
have revalued the property at £4.5m, giving a revaluation surplus of £1.5m which
has been credited to reserves.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1336 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Brockhouse optimism for return to profitability

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 230 words

ALTHOUGH there are no significant signs that overall demand is increasing, Mr R.
J. H. Parkets, chairman of Brockhouse, says he is optimistic that the year ahead
will produce a return to profitability for the group.

In the year to September 30, 1981, the group, which has interests in
engineering, transport, building and materials handling, and equipment
manufacture, incurred pre-tax losses of £1.96m compared with profits of
£757,000.

He says in his annual review that there are signs that the group should be
firmly pulling out of its present malaise by mid-1982. This pre-supposes no
serious setback nationally, and no deepening of the recession in the U.S. to
upset world trade. Regardless of these and other possible upsets, he says it is
difficult to accept that 1982 could be worse than 1981.

Mr Parkes adds that a few improvements are appearing here and there, but
experience dictates caution. "There is no doubt," he says, "we are picking up
orders once enjoyed by manufacturers no longer in business. I reiterate my last
year's comments that an upturn of any magnitude would expose a shortage of
manufacturing capacity.

"This, in turn, would bring in exports and be counter-productive to the nation's
long-term interests. I hope, therefore, that the pick-up will be gradual and
digestible, but history does not support this possibility."

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1337 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

JACKSON GP

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 88 words

Jackson Group has acquired ATC Pneumatics, a subsidiary of WGI, within its
industrial division.

ATC Pneumatics provides compressed air equipment and services. Branches at
Northampton, Nottingham, Sheffield and Hull will be merged into the Jackson
Group subsidiary, Anglia Pneumatics, which operates similar sales branches.

Mr F. Jackson, chairman, said that the transaction took full account of the
interests of the employees and customers, as well as creating a more effective
and economical sales organisation.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1338 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

WM. MOAT & SONS

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 35 words

John Siddall and Son, acting on behalf of Mr Kearns, has announced that valid
acceptances have been received for 144,260 Wm Mowat and Sons ordinary shares
(14.43 per cent). The offer has closed and lapsed.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1339 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Strong and encouraging start for Whessoe

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 256 words

STARTING the current period in a situation consistently strong and encouraging
for all three principal operating companies, Lord Erroll of Hale, chairman of
Whessoe, tells members that the year to September promises to show a further
appreciable increase in activity, turnover and profit.

Gross order book at September 26 last amounted to £250m, compared with £217m
previously.

With regard to the Qatar claim, arising from loss, damage and expense at Umm
Said in 1976 and 1977, the directors say that these losses have not been
quantified, except for an unsubstantiated indication made on behalf of the
claimants that the cost of replacement of the plant and other losses may be as
high as £300m.

Whessoe has taken advice from leading technical experts, liability is denied and
both proceedings will be strenuously defended. No provision has been made in
the accounts.

As reported on December 18, an excellent result from the heavy engineering
subsidiary, enabled the group to swing back into the black for the 12 months
ended September 26 1981. Pre-tax profits totalled £4.58m, against losses of
£412,000. Heavy engineering contributed trading profits of £5.04m (£1.97m).

The balance sheet shows fixed assets of £14.25m (£14.31m), net current assets of
£8.35m (£5.11m), and shareholders' funds of £22.87m (£16.38m). Bank balances
and cash increased to £5.09m (£1.03m) and bank overdrafts and loans were much
lower at £3.81m (£9.92m).

Meeting, St Ermin's Hotel, SW, January 28 at noon.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1340 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

W. CANNING

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 180 words

W. Canning has announced that its wholly owned subsidiary W. Canning
Environmental Services of Telford, Shropshire, has sold its interest in the
distribution of equipment for controlling oil pollution of inshore waters as at
December 31 1981.

The purchaser of Oil Pollution Defence, a company in which a former director of
certain Canning subsidiary companies will have a controlling interest while
Canning will have a 26 per cent minority interest as a trade investment but no
other involvement.

W. Canning has also contracted to sell as at December 31 1981, a controlling
interest in its subsidiary HB Instrumentation, a Bolton based company
specialising in the design and supply of engine testing systems and
dynamometers.

The purchaser is Mr F. Waterworth who has been managing director of the company
for four years. W. Canning will also retain a 26 per cent interest in the
company. The present three employees will continue under the new ownership.

The effect of these two sales on the assets and profitability of W. Canning
group is negligible.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1341 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Blue Circle offshoot sale may bring bids of £40m

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 244 words

Blue Circle Industries, the cement manufacturer, will invite bids for its West
Midlands-based sand and gravel quarrying subsidiary, Blue Circle Aggregates. A
tendering process will be conducted by Baring Brothers and bids are expected to
fall in the region of £30-40m.

The subsidiary has contributed annual profits to the group of about £2m over the
last five years, but the eventual sale price is expected to relate more to the
asset value. Its assets include 12 operational quarries, 12 undeveloped
quarries and some on-site plant.

The sale will also involve additional gravel bearing lands owned by Blue Circle.

Blue Circle said yesterday it had decided to sell in view of a growing
domination of the aggregates industry by vertically integrated groups "where
aggregate extraction is only part of the production operations." Good relations
with its own cement customers precluded Blue Circle from following this path and
it therefore faced the prospect in the long term of being at a disadvantage to
larger competitors.

The subsidiary has about a 3 per cent share of the national aggregates market,
producing about 3m tonnes annually.

Bidders will receive full information about the business and will be invited to
discussions with Blue Circle. The parent anticipates drawing up a short list of
bidders and may then invite revised offers. Full consideration will be given,
it says, to the future of the subsidiary's 350 employees.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1342 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

London Shop rejects 135p a share Rosehaugh offer

BYLINE: BY WILLIAM COCHRANE

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 297 words

London Shop Property Trust yesterday flatly rejected this week's 135p-a-share
bid from Rosehaugh, which valued the company's equity and near-equity at £19.7m.

Rosehaugh's offer was subject to two major conditions: the recommendation of the
London Shop board; and London Shop shareholders voting against London Shop's own
proposal of a merger with its sister company, Beaumont Properties, at a
shareholders' meeting next week.

In a letter to shareholders, London Shop's chairman, Mr J. Hugh Jones, says:
Were Rosehaugh to proceed with the proposed offer, your board would strongly
advise its rejection as being totally inadequate."

City observers expect that Rosehaugh will increase its bid, possibly today. The
company's advisers, J. Henry Schroder Wagg, have been taking soundings among the
institutional shareholders which hold some 35 per cent of London Shop, and the
feeling exists in the City that an increase in the offer to perhaps 150p a share
might meet with a better response.

This does not mean that London Shop has given up the fight to stay independent
in its own way. "We are confident," said Mr Jones yesterday, "that the merger
with Beaumont is the right thing for both sets of shareholders."

Mr Jones also sounds sure, at least for the moment, of the backing of Sir Cyril
Black and his family, long standing shareholders in London Shop with an
estimated 15 per cent of the equity.

London Shop's chairman also revealed that more changes at non-executive director
level were on the way. Mr S. P. Farr, senior partner of City surveyors Dron and
Wright, was appointed to the board six months ago.

"Non-executive, but giving time to the company," was the way Mr Jones put it.
He expects two such appointments to be announced shortly.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1343 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

RTZ builds up Ward stake to 24.9%

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 120 words

Rio Tinto-Zinc has acquired a further 5.55m shares of Thos W. Ward in the market
at 230p per share cum dividend, equivalent to the value of its cash bid for Ward
under the revised terms announced the day before yesterday.

This has brought RTZ's stake in Ward's ordinary equity up to 14.53m shares, 24.9
per cent of the total. Acceptances received from Ward shareholders by January 6
accounted for a further 3.15 per cent.

Reiterating the Ward board's rejection of RTZ's bid, Mr Peter Frost, the
chairman, yesterday wrote to shareholders urging them not to help the bidder by
selling their shares in the market. He said he would be writing to them again
shortly with detailed comments on the revised bid.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1344 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

CAMBRIDGE PETROL ROYALTIES OPTIONS

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 81 words

Cambridge Petroleum Royalties has allotted 372,789 ordinary shares after having
exercised all the outstanding options originally granted to Cambridge Royalty
Company of Houston, Texas, but disposed of by that company in December 1980.
The options gave the right to subscribe for new shares at 175p per share and
Cambridge Petroleum Royalties accordingly received subscription monies of
£652,000. There are now 5m ordinary shares of the company in issue including
the new shares.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1345 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

RANSOMES SELLS SUBSIDIARY

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 62 words

Ransomes Sims and Jefferies of Ipswich has announced the sale of its wholly
owned subsidiary distribution company, Ransomes Grass Machinery (Scotland). The
company, which will continue its present activities from Edinburgh and Glasgow,
has been acquired for £800,000 by Frews Tractors of Perth which already
distributes Ransomes products in other areas of Scotland.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1346 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

JAMES NEILL

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 74 words

James Neill Holdings sold the unexpired term (173 years) of its leasehold in
premises in Handsworth Road, Sheffield. The sale was made to ICFC Properties for
£1.93m on December 31. The whole of the premises were simultaneously leased
back to the company for a 50-year term.

Moore and Wright, manufacturers of micrometers and other precision tools, and a
whollyowned subsidiary of the company, will continue to occupy the premises.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1347 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Ladbroke sells off public house chain and racetrack

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 116 words

Ladbroke Group, the leisure betting and hotels group, is selling off its R. V.
Goodhew chain of 19 public houses to Chef and Brewer, a subsidiary of Grand
Metropolitan. At the same time the group is also selling the racecourse at
Lingfield Park, Surrey, to a company controlled by Mr R. A. Muddle, a
businessman with racing interests.

Chef and Brewer is the largest managed house group in the UK, the latest
acquisition giving it a total of 1,619 public houses. Of the 19 pubs being
acquired from Ladbroke 13 are in the Greater London area. The total number of
public houses in the Grand Met group amounts to some 5,000. The group controls
the Watney Mann and Trumans breweries.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1348 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

HEMDALE ACCEPTS

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 195 words

Acceptances of the offer by Southbrook and City Holdings for Hemdale Film Group
have been received in respect of 6,594,922 shares (88.67 per cent). With the
488,793 shares already held, this amounts to 7,083,715 shares (95.24 per cent).

The offer is unconditional as to acceptances and the closing date is extended.

It remains conditional on Hemdale holders approving the resolution to dispose of
Hemdale Leisure Corporation Incorporated to Ritexa at an EGM on January 8.

Ladbroke said yesterday that the opportunities to expand tavern operations in
the London area are extremely limited and in view of the offer received it was
decided to sell.

The company added that this will enable it to concentrate its activities in
South Wales where its subsidiary, Astey's, operates in both the licensed and the
unlicensed sectors.

The contract for the sale of Lingfield Park provides for the continuation of
racing for a minimum period of three years. Completion of the sale is to take
place on March 1.

The sale proceeds of both transactions will be applied as part of the capital
investment programme of the hotel and leisure divisions for 1982.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1349 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

LOFs PURCHASE

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 77 words

London and Overseas Freighters has bought out the minority in Welsh Overseas
Freighters for £2.66m in cash.

LOFs has owned 51 per cent of the company since it started trading 21 years ago.
The company's principal asset is a 27,107 dwt bulk carrier, the "Welsh Voyager,"
built in 1977.

At March 31 1981 the net asset base of Welsh Overseas was £4.9m including cash
of £2.3m. Net profits for the year ended March 1981 were £342,278 pre-tax.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1350 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

LINFOOD HOLDINGS

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 76 words

Linfood Holdings expects to complete the sale of its barely profitable Delivered
Wholesale division before the end of its financial year on April 24. Subject to
the approval of its shareholders at an extraordinary meeting on February 5, the
stores, cash and carry and wholesale group will sell the division to its
existing management team in an asset-related deal which is expected to be worth
£21m. The division is to be re-named AFD Holdings.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1351 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

NO PROBE

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 25 words

The acquisition by Renault Vehicules Industriels of 50 per cent of Karrier
Motors will not be referred to the Monopolies and Mergers Commission.

LANGUAGE: ENGLISH

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1352 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Guinness Peat seeks to solve long-running row

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 324 words

THE Guinness Peat board will meet today to discuss possible solutions to the
long running row between Mr Edmund Dell, the group's chairman and chief
executive, and Lord Kissin, the founder and life president.

Guiness Peat's advisers, Morgan Grenfell, and Lord Kissin's advisers, Hambros
Bank, have held a series of meetings over the last month, following the
announcement that Lord Kissin was preparing to make a partial bid for a
"significant stake" in the group -- thought to be 20 per cent.

Since Mr Dell took over as chairman, from Lord Kissin, in November 1979, the
group's profits have fallen sharply, the dividend has been cut and several
old-established group investments have been sold. Lord Kissin is understood to
have been unhappy at the speed with which many of these sales have been
completed and the new direction the group has been taking. Other non-executive
directors are understood to be sympathetic to his views and prepared to back his
partial bid.

The Bank of England has been drawn into the affair and has been helping both
sides in their search for a compromise.

Several solutions have been canvassed, but the one which seems most likely
involves a restructuring of the senior management. One suggestion is that a new
chief executive will be recruited from outside the group and Mr Dell will
concentrate on the group chairmanship.

Several candidates are understood to have been sounded out. However, any
candidate will need the support of the Guinness Peat board and Lord Kissin which
could be difficult. Lord Kissin has shown no interest in returning in an
executive role, but is still anxious that the group should be given the sort of
leadership and direction which will inspire the staff, many of whom remain loyal
to him personally.

Since the possibility of a partial bid was announced in December, the Guinness
Peat share price has gyrated. Last night it closed 2p lower at 93p.

LANGUAGE: ENGLISH

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1353 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

WESTERN SELCTN.

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 52 words

Western Selection and Development has agreed, subject to contract, to sell its
wholly owned subsidiary British Patent Glazing Company to Aluminium and Timber
Securities. The sale price will be based on the net asset value of BPG as at
September 30 1981, and is subject to agreement between the parties.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1354 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Holden board not told of IP purchase

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 80 words

Arthur Holden, the specialist surface coating manufacturer, yesterday responded
quickly to the acquisition of a 12 per cent stake in the company by
International Paint, a subsidiary of Courtaulds.

Holden said that the purchase was made without "the knowledge or consent of the
directors of Holden." The company said that the directors of Holden "wish to
state that they do not share the belief of IP in the desirability of a closer
relationship between the two companies."

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1355 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SOGOMANA IN LAND TALKS

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 46 words

Sogomana Group says it is negotiating with a Malaysian company for the sale of
527 acres of Shelford Estate at a price of approximately M$35m (£8.1m). These
negotiations are at an early stage and completion would be subject to approval
of the Malaysian authorities.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1356 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

ESPLEY-TYAS/QUEEN STREET

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 40 words

Espley-Tyas, property group, has received acceptances to its offer (including
those not valid in all respects) in respect of 13,530,216 ordinary shares in
Queen Street Warehouse (Holdings) (88.63 per cent). The offer is now closed.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

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Financial Times (London,England)

January 8, 1982, Friday

UNITED CARRIERS PARCELS EXPRESS

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 67 words

United Carriers has purchased the outstanding 76 per cent interest in Parcels
Express from Greater Manchester Passenger Transport Executive together with the
freehold premises from which Parcels Express operates at Parrs Wood, East
Didsbury, Manchester.

The total consideration is satisfied by 317,202 ordinary shares which have been
placed on behalf of the vendors to realise £480,000 net.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1358 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

ARBUTHNOT LATHAM

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 91 words

The recommended offers made by County Bank on behalf of Dow Scandia for
Arbuthnot Latham Holdings were declared unconditional in all respects on
November 19 1981.

Dow Scandia has announced that, having received sufficient acceptances in
respect of its offer for the 6 per cent cumulative preference shares of ALH, it
intends to exercise the powers conferred by section 209 of the Companies Act
1948 to acquire compulsorily all the outstanding preference shares of ALH.

All the offers remain open for acceptance until further notice.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1359 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

PERMANENT GP.

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 63 words

Mr Phipip Baldwin, of Price Waterhouse, as receiver of Permanent Houses Group
has concluded the sale of two of its haulage subsidiaries.

The companies, Himpsold Haulage and Permatrans, have been sold for an
undisclosed sum to Peter Ford Transport. All three companies are based in
Gloucester.

The Permanent Houses Group went into receivership in October 1981.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1360 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

MIDLAND NEWS

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 20

LENGTH: 44 words

The listing of Midland News Association's 8 per cent cumulative preference
shares has been cancelled -- more than 86 per cent have been acquired by
Claverley Company. Application to make specific bargains in the shares under
Rule 163 (2) may be submitted.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1361 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Rustenburg Platinum is feeling the pinch

BYLINE: BY KENNETH MARSTON, MINING EDITOR

SECTION: SECTION II; Companies and Markets; Mining News; Pg. 20

LENGTH: 523 words

UNDER NORMAL circumstances the price of platinum on the free market (which is
largely supplied by Soviet material) is some 20 per cent above that of gold.
But since November 1980, free market platinum prices have fallen below those of
gold. At the moment free market platinum is about $378 per ounce compared with
$397 per ounce for gold while the "producer" platinum price quoted by the major
western mines remains at $475 per ounce.

Mr Gordon Waddell, chairman of the world's leading producer of the metal, South
Africa's Rustenburg Platinum Holdings, says in his annual review that the fal in
the free market price of platinum, along with that of gold, "seems to reflect
the continued emphasis on the monetary facet of precious metals and to ignore
the fact that platinum is also a strategic industrial metal."

Be that as it may, demand for platinum at the producer price continues to fall
and significant quantities of the metal are being purchased by consumers from
the cheaper free market. Customers of Rustenburg's are thus restricting their
purchases to the contractual minima.

Consequently, Rustenburg's profits for the first half of the current year to
August 31 "are likely to be severely lower" than in the same period of 1980-81
when net profits fell by 2.7 per cent for the full year.

"The same is true for the (current) year as a whole and, indeed, until either a
better balance of supply and demand is established at Rustenburg's price or
until there is an economic recovery in the U.S. and Western Europe," says Mr
Waddell.

Why does not Rustenburg lower its selling price to nearer the free market
levels? Mr Waddell answers this by pointing out that free market platinum
stocks held by speculators have now diminished and "the liquidation of stocks
held by other than the producers is primarily motivated by the desire to realise
cash to be invested elsewhere and consequently the price realised for the
platinum appears to be a lesser factor.

"For the present, therefore, there seems no advantage to be gained by Rustenburg
in matching the free market price, as that price would seem likely only to fall
further and it is unlikely that Rustenburg would sell significantly larger
quantities," says Mr Waddell.

The company clearly feels that it can avoid having to compete for sales in a
falling market while it has the backing of a strong financial position which has
been built up over the past few years in order to face lean times such as these.

When the eventual recovery comes Rustenburg has the productive capacity -- and
metal stocks -- to make the most of the revival in demand. But in the meantime
some reduction appears to be on the cards for the, rather unexpectedly,
increased dividend of 45 cents (24.5p) paid for the year to last August.

That payment was covered 2.1 times by earnings and at the current price of 214p
Rustenburg shares show a yield of only 11 per cent. Shares of the rival Impala
Platinum, however, which is no doubt also suffering from the poor platinum
market, stand at 330p to show a higher yield of 18 per cent on a twice-covered
dividend.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1362 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Nchanga's new copper plant

SECTION: SECTION II; Companies and Markets; Mining News; Pg. 20

LENGTH: 233 words

ZAMBIA'S state - controlled Nchanga Consolidated Copper Mines (NCCM) says that
construction is to start soon on the third stage of its K206m (£122m) tailings
(mine residue) leach plant at the Chingola mine division.

The plant, which will recover remaining copper from the waste material, is due
to come into operation in the last quarter of 1984. It will provide a cheaper
method of obtaining new copper than shaft-sinking and is expected to produce
524,000 tonnes of the metal over a 15-year period.

Material for the new plant will come from tailings dams around the Chingola
division which have built up since mining started there in 1939.

NCCM said it is assembling project funds from various international lending
houses.

Engineering design and construction management will be provided by NCCM and its
wholly-owned British subsidiary, Ziambia Engineering Services. Plant
construction will be contracted out to Zambian firms.

Estimated profitability of the new plant over the first 12 years of operation is
K523m after depreciation and interest but excluding tax. The Zambian
Government's tax share is put at K367m over the same period.

NCCM and Zambia's other state-controlled copper company, Roan Consolidated
Mines, are expected to complete legal aspects of their merger arrangements at
around the end of March, forming the new Zambia Consolidated Copper Mines.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1363 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Late rally lifts Dow 0.76

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 21

LENGTH: 278 words

WALL STREET stocks finished the day on a mixed note after some late strength
pulled the market back from earlier lows.

After falling as much as six points, the Dow Jones Industrial Average recovered
to close 0.76 up at 861.78. Declines continued to lead advances by 790 to 650
and volume slipped to some 43m shares from 51.51m.

AT MIDSESSION the average was off 5.81 at 855.21; the NYSE All Common Index was
down 42 cents at $68.76.

Analysts said both stocks and bonds are still reacting to bearish developments
on the interest rate front, particularly Salomon Brothers' economist Henry
Kaufman's prediction that rates will start moving higher by mid-year.

Concerns about the heavy schedule of Treasury financings in this quarter are
also pushing bonds down, analysts said, and the bargains available in that
market are drawing investors away from the stock market.

Declines were spread across the board, with Technology, Oil, Rail and Precious
Metal stocks registering some of the more significant falls.

Oil stocks have been falling all week, reflecting predictions that crude oil
prices will be lower this year.

MGIC Investment was the volume leader again and hardened 1/8 to $49 1/4. The
Wisconsin State Insurance Commission approved the company's merger into
Baldwin-United [TEXT ILLEGIBLE] $52 a share. Baldwin receded $1 to $61.

U.S. Steel was off 7/8 to $28 1/4. The company was the victor in a struggle
with Mobil to acquire Marathon Oil, and yesterday it purchased 30m Marathon
shares. Mobil shed 3/8 to $23 3/4.

THE AMERICAN SE Market Value Index fell 3.09 further to 308.20 at 1 pm. Volume
2.82m shares (3.22m).

LANGUAGE: ENGLISH

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January 8, 1982, Friday

Canada

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 21

LENGTH: 87 words

A further sharp decline occurred on Canadian markets in another moderate early
trade. The Toronto Composite Index was down 17.6 more at 1,883.1 at mid-day.
The Oil and Gas index receded 61.2 to 3,500.0, Golds 52.7 to 2,772.5 and Metals
and Minerals 23.8 to 1,768.3.

Greyhound Lines fell 1 1/2 to C$20 1/2, Camflo Mines 1 1/8 to C$18 1/4, Numac
Oil and Gas C$1 to C$25 1/2 and Trans-Western Exploration 1 3/4 to C$12 3/8.

In active trading, Dome Petroleum shed 3/8 to C$13 1/2 and Noranda 1/4 to C$21
3/4.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 8, 1982, Friday

Tokyo

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 21

LENGTH: 187 words

The market retained an easier tendency in moderate activity, with scattered
liquidation of margin positions taking place.

Wall Street's further decline overnight was a depressant, while sentiment was
also dampened by gloomy prospects for Japanese exports due to trade conflicts
with Western partners, stock analysts said.

The Nikkei-Dow Jones Average was only 6.38 lower at 7,691.22, but the Tokyo SE
index was 1.89 weaker at 567.57. Turnover matched Wednesday's level of 280m
shares.

Light Electricals, precision Instruments, Motors, Heavy Electrical Machines and
some other leaders were easier but Non-ferrous Metals, Oils and Machine Tools
were bought selectively.

Toyota Motor shed Y30 to Y1,000, Mitsubishi Elect Y8 to Y317, Canon Y12 to Y895,
Sharp Y20 to Y790, Mitsubishi Heavy Y4 to Y246 and Tokyo Marine Y6 to Y504.

High Technology issues, such as Optical Fibres, Robot Markers and Synthetic
Fibres, declined a little on profit-taking, while some recently strong
Pharmaceuticals lost ground.

Kyoto Ceramic, Y4,050, relinquished Y90 of the recent sharp rise on its new
ceramic engine.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1366 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Paris

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 21

LENGTH: 181 words

With sentiment favourably influenced by Finance Minister Jacques Delor's goal of
an annual inflation rate of 10 per cent by the last quarter of 1982, stock
prices, after Wednesday's pause, resumed Tuesday's strong rally in an active
session. The CAC General index climbed 2.4 to 92.3 and the Indicateur de
Tendance index added 2.6 at 103.0.

Analysts said there had been some buying by Mutual Funds specialising in French
stocks, and that market rumours of buying orders from foreign investors also
fuelled the rally.

Advances outnumbered declines by six-to-one in the French section. The dollar
premium closed at FFr 6.71-74 after having opened at FFr6.70-FFr 6.72.

Dealers noted that trading was unaffected by recent polls indicating employers'
disillusion with the Government's economic policies.

Rises predominated in all sectors, although there was some selling among Motors
and Transportation issues.

Radiotechnique featured with an advance of FFr 23 at FFr 220, while BSN Gervais
Danone moved ahead FFr 85 to FFr 1,295 and Bouygues FFr 51 to FFr 1,050.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1367 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Hong Kong

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 21

LENGTH: 152 words

Prices opened on a steady note yesterday following favourable Press comment, and
generally gained ground later when some institutional support developed. The
Hang Seng index improved 23.68 to 1,409.40, but turnover remained thin,
totalling HK$197.40m on the four exchanges against the short Wednesday session
amount of HK$119.48m.

Brokers commented that the market is bouncing within a trading range, with some
institutions appearing to be mostly buying relatively cheap blue chips. They
added that the upswing did not indicate a real trend, and that when turnover
does increase it may be due to an influx of sellers.

Among the leaders, Jardine Matheson rose 60 cents to HK$19.90, Hutchison Whampoa
50 cents to HK$17.80, Cheung Kong 30 cents to HK$21.50 and HK Electric also 30
cents to HK$5.60. Elsewhere, China Light put on 30 cents to HK$13.70 and Swire
Properties 30 cents to HK$7.20.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1368 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Germany

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 21

LENGTH: 111 words

Uncertainty about U.S. interest rates coupled wiht weak West German Bond markets
depressed stock market sentiment, but brokers said their was foreign buying
which left shares no worse than mixed.

On the Domestic Bond market, Public Authority Loans posted losses reaching 60
pfennigs. The Bundesbank bought DM 83.4m of paper after buying DM 14.9m the
previous day.

Persistent sales this week of Schuldschiene Promissory Notes by the Federal
Government, which yesterday offered maturities of eight-to-10 years yielding a
maximum 10.1 per cent, are depressing the Bond market, dealers said.

Mark Eurobonds eased by a 1/4 of a point in quiet trading.

LANGUAGE: ENGLISH

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1369 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Australia

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 21

LENGTH: 58 words

Shares were mainly softer, continuing Wednesday's declining trend, with Oil
issues weakening afresh after a recent firming trend. The All Ordinaries index
lost 3.7 at 583.1 and Oil and Gas 13.2 at 664.2.

Among Oils, Alliance shed 20 cents to A$1.60, Santos 24 cents to A$6.56, Vamgas
20 cents to A$11.00 and Claremont 4 cents to A$1.38.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1370 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Rohan to develop riverside site

BYLINE: BY MICHAEL CASSELL

SECTION: SECTION II; Companies and Markets; The Property Market; Pg. 22

LENGTH: 463 words

ROHAN Developments, the UK arm of the Dublin-based Rohan Group, is to develop
the 100,000 sq ft office building planned for part of Morgan Crucible's
controversial riverside site in Battersea.

The future of the London site has provoked several local uprisings on the part
of the Battersea community ever since Morgan closed down operations there and
announced that it intended to redevelop the 10.7 acres of land involved.

Rohan was among a short-list of five or six developers drawn up by Morgan and it
has already obtained detailed planing permission from Wandsworth for its
proposals. The single building will occupy a 1 1/2 acre site and will provide
about 85,000 sq ft net of office floorspace. Work will begin later this year
and should take about 18 months to complete.

Rohan, which will be purchaseing the freehold of the land required for the
office scheme, says it represents one of the most important riverside sites left
in London and the scheme will offer a good headquarters location for a major
company. There are, as yet, no tenants in mind for the building, which will lie
alongside Battersea Bridge Road and is half a mile from Battersea heliport.
Rohan, which is ready to sell the building on if a buyer comes along, has itself
met site acquisition costs but is talking with potential funding partners for
the office scheme.

The office complex forms part of the overall redevelopment proposed by Morgan --
there have been two public inquiries into the future of the site -- and the
remainder of the land is to be given over to homes and a riverside walk. Wates,
the housebuilders who have been involved in previous proposals for the site, are
understood to be ready to announce an agreement to develop the housing.

The Battersea deal represents something of a milestone for Rohan, which has for
two years been trying to diversify its UK operation away from the industrial
sector. It is currently engaged on a small office project in Kent but the
Battersea scheme is by far its largest office coup to date. The company is also
looking at infill retail schemes and town centre projects of up to £25m.

According to John Taylor, the ex-British Land man who heads up the UK operation,
he has had an eye on the Battersea site for two or three years, long before he
joined Rohan. He is enthusiastic about the scheme's potential -- refusing to
accept that the south bank site represents a problematical location -- and says
the development will provide top quality space with ready access to the heart of
London.

Though keenly aware of the site's troublesome history -- more than one Morgan
Crucible annual meeting has degenerated into unseemly slanging matches -- Taylor
does not foresee the reason for any further problems.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1371 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Rosehaugh goes shopping

BYLINE: WILLIAM COCHRANE; BY MICHAEL CASSELL

SECTION: SECTION II; Companies and Markets; The Property Market; Pg. 22

LENGTH: 424 words

THE CHOICE facing shareholders of London Shop Property Trust, currently the
subject of a 135p a share bid from Godfrey Bradman's Rosehaugh, is by no means
the clear-cut, "take it or leave it" option available in more normal
circumstances.

Mr Bradman's bid coincided with London Shop's own announcement of a merger
between itself and sister company, Beaumont Properties. So, as Mr Bradman put
it this week, "London Shop shareholders can either opt for more of the same"
which he reckons would result in the merged London Shop/Beaumont standing at a
sizeable discount to asset value -- "or take an option on Rosehaugh's
management."

At the end of December, Rosehaugh bought a 21.4 per cent stake in London Shop --
formerly held by McLeod Russell -- and it is not thought to have done any buying
since. Given the terms of the bid, it looks as though much will depend on the
character and aspirations of London Shop shareholders, none of whom command an
equity stake anywhere near the scale of Mr Bradman's.

London Shop has made no secret of the fact that it tends to buy, hold and to
some extent deal in secondary shop properties. The company, and its merchant
bankers Schroder Wagg, feel that this policy has been vindicated by an increase
in net assets per share from 114p a share in April 1978 to 198p last December.

A spokesman for Schroder Wagg said this week that, given the breadth of the
London Shop and Beaumont portfolios -- "over 1,000 leases in both companies" --
it would be a misrepresentation to call the portfolios themselves secondary,
whatever their individual content.

In the same three and a half years during which London Shop has measured itself,
however, Godfrey Bradman reckons that Rosehaugh has increased its own net assets
per share from "5p or 6p" to a figure on whcih he will not yet be drawn -- but
which some stockbrokers analysts calculate could be as high as 280p a share.

This is probably not enough to swing the deal Rosehaugh's way but it could stop
London Shop shareholders voting for the Beaumont merger next week.

Naresh Gudka, of stockbrokers Quilter Hilton, thinks that Mr Bradman will have
to delve deeper into his corporate pocket -- perhaps to the extent of another
15p a share -- to get a positive reaction from the London Shop shareholders.

Events can always prove the City wrong, but the general impression is that the
affair has only reached the early skirmishing stage, with the bidder offering
too little and the "victim" probably about to ask for too much.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1372 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Market admiration at GM option move

BYLINE: Paul Betts; BY MICHAEL CASSELL

SECTION: SECTION II; Companies and Markets; The Property Market; Pg. 22

LENGTH: 434 words

GENERAL MOTORS and a New York property investment trust sent the Manhattan real
estate market buzzing with admiration and surprise this week with a whopping
$500m piece of creative property financing.

The unorthodox transaction not only reflects the growing problems of the once
booming Manhattan office property market but could well be the start of a new
trend. Landaur Associates, part-owned by Hillier Parker May and Rowden, were
consultants to GM and Roger Cockhill at Hilliers says he expects to see more
transactions along these lines.

GM, struggling with rockbottom car sales, has been trying to sell its
prestigious New York Office tower -- a 50-storey marble clad landmark building
overlooking Central Park -- since last April for at least $500m.

The sale would have set a new record in the New York property market topping the
$400m sale of the Pan Am building last January. But the sale of the Pan Am
building came at the peak of the latest Manhattan property boom.

With the latest transaction GM has still failed to sell its building but has
raised $500m in cheap money and moved closer to eventually selling the tower
block.

Under the terms of the deal, Corporate Property Investors, a privately held real
estate investment trust formed ten years ago by both American and foreign
investors, is advancing GM a $500m ten-year loan at annual interest of 10 per
cent.

In return, GM has granted CPI, which owns New York properties and several major
regional shopping centres, an option to buy the building after January 2, 1991,
for not less than $500m. In addition, CPI would have to assume the balance on
the existing mortgage on the building of about $45m.

But there are other advantages to both parties in the transaction. According to
Mr Hans Mautner, president of CPI, delaying the purchase of the building makes
sense in that the property group will be getting a higher return from its loan
to GM than it would receive from the outright purchase of the GM tower.

This is because rent yields from the building, which are estimated at about $16m
net this year, will be held down for the next five to ten years as most of the
current leases do not expire until between 1986 and 1989. In the case of the
Pan Am building, most of the old leases expire in 1984.

For General Motors, the deal defers New York City capital gains taxes on the
sale of the building for ten years. At the same time GM retains the building's
depreciation tax deductions which might not be as interesting to CPI since
several of its shareholders are tax-exempt pension funds.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1373 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Wang to relocate

BYLINE: BY MICHAEL CASSELL

SECTION: SECTION II; Companies and Markets; The Property Market; Pg. 22

LENGTH: 99 words

WANG LABORATOIRES, the wunderkind of the minicomputer and word processing world,
has consolidated the rapid growth of Wang (UK) by taking a 25-year lease on
Northumberland House, Hounslow, from developers County and District Properties,
and Sun Alliance, at an annual rental of around £3/4m.

Ronnie Franks, a senior partner of Smith Melzack which acted for Wang in the
transaction, reckons that this values the 60,000 sq ft building at around £15m.

Smith Melzack will also be handling the disposal of Wang's two outgrown Richmond
properties when the move takes place next April.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1374 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Mansion House Square scheme is resurrected

BYLINE: BY MICHAEL CASSELL

SECTION: SECTION II; Companies and Markets; The Property Market; Pg. 22

LENGTH: 131 words

A PLANNING application for an 18-floor office building, shops and public square
in front of London's Mansion House has been lodged by developer Mr Peter
Palumbo.

The proposed £30m development, based on a 1968 plan by Mies van der Rohe,
includes a 137,000 sq ft net office tower and -- if approved -- would get
underway in 1986.

Mr Palumbo has, over the last 23 years, acquired 12 of the 13 individual
freehold and 345 of the 348 leasehold interests that constitute the scheme's
site.

The plan would entall the demolition of eight listed buildings. In 1969, the
City Corporation agreed in principle to the proposal but withheld full
permission until it could be satisfied the developer had sufficient control of
the site to ensure a continuous, phased operation.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1375 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

BYLINE: BY MICHAEL CASSELL

SECTION: SECTION II; Companies and Markets; The Property Market; Pg. 22

LENGTH: 62 words

Fountain House, the 100,000 sq ft City building let to Stewart Wrightson, is to
be refurbished by Sunley Holdings at a cost of about £6.5m. Sunley will fund
the plan and will, in return participate in profit rental (£1.1m in 1980).
Edward Erdman advised the tenants, who say the leasehold interest has a market
value of about £14m against the £10.9m book figure.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1376 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

BYLINE: BY MICHAEL CASSELL

SECTION: SECTION II; Companies and Markets; The Property Market; Pg. 22

LENGTH: 32 words

Sun Life is to fund the Grosvenor Estate Commerical Developments shopping scheme
for the Grafton Centre, Cambridge, where Debenhams are taking 100,000 sq ft of
the 300,000 sq ft complex.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1377 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; The Property Market; Pg. 22

LENGTH: 65 words

Bracknell Development Corporation has invited six companies to make bids for a
freehold retail site in the town centre which will be developed to provide
nearly 200,000 sq ft of shopping space. The companies are: Heron Property,
Sunley Holdings/BSC Pension Fund, Hammerson, London and Metropolitan, Neale
House Investments and Prudential Assurance. Healey and Baker act for Bracknell.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1378 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Agents beat the analysts

SECTION: SECTION II; Companies and Markets; Christmas Quiz Answers; Pg. 23

LENGTH: 844 words

THE PROSPECT of a Christmas quiz hat-trick for Quilter Goodison, the London
stockbrokers, has been snatched away from them by the sterling efforts of the
Richard Ellis invetment department and Weatherall Green and Smith, this year's
joint winners and each the recipient of a magnum of champagne.

So the agents take over from the analysts and Quilter Hilton fail to receive an
honorary FT knighthood to add to Sir Nicholas Goodison's recent honour, though
they missed glory by a whisker -- as did Colin Munday and Peter Grodzinski at
Hoare Govett. My thanks to everyone who entered and my hope that this year
provides enough material for another quiz.

Picture questions. (a) Lord Mais. (b) Ronald Shuck. (c) 1 Lesser Land. 2
Rohan. 3 Brixton Estate. 4 Centros Properties. 5 Chesterfield Properties. 6
Viking Property. (d) Ed Gouge, GLC planning committee chairman. (e) Kurt
Kilstock.

1 -- As head of Costain's property division, Mr Melville shelved plans for a
shopping scheme at the Woolwich Arsenal site.

2 -- Blue Circle Industries, facing a big rent rise, is considering relocating
its Victoria headquarters at Aldermaston, Berkshire.

3 -- Oliver Marriott, whose Churchbury Estates took over Law Land, a company
which 21 years before he had suggested was in need of new masters.

4 -- Aztec West.

5 -- Willie Whitelaw's Home Office headquarters are held on a lease from Land
Securities, the group headed by Lord Samuel of Wych Cross.

6 -- Donald Trump.

7 -- The former St George's hospital at Hyde Park Corner in London. William
Wilkins designed it and the Duke of Westminster's Grosvenor Estate is
modernising it as part of a new development scheme.

8 -- Corby -- in June 1981. (Several entrants elected Swansea, which also
started in June but which steadfastly remains in Wales.)

9 -- Godfrey Bradman of Rosehough teamed up with Greycoat Estates to revelop a
site close to Liverpool Street station.

10 -- Arunbridge -- headed by Ronnie Lyon -- is proposing to develop 12 acres of
south bank land surrounding Vauxhall Bridge, including the existing Nine Elms
cold store complex.

11 -- Dixons Photographic is in the picture in Broad Street, New York, where it
is developing an office scheme with British Airways' pension fund.

12 -- Half Moon Theatre; Fortune Theatre; Duke of York;

13 -- Land Securities' plans to redevelop Grand Buildings in Trfalgar Square
were rejected by Westminster City Council.

14 -- Smith Melzack.

15 -- They are all buildings which have been listed by the Department of the
Environment as being of architectural interest.

16 -- Saatchi and Saatchi, advertising agents to Richard Ellis, were ticked off
for using simulated press cuttings in an Ellis campaign.

17 -- Gerald Zisman appeared in Liverpool docks to announce that his plan for a
£20m scheme at the City's Albert Dock was being backed by the Department of the
Environment.

18 -- New York's Battery Park area is being redeveloped by Olympia and York, the
Canadian-based property group.

19 -- A consortium comprising Slough Estates, Shell Pension Fund and George
House Holdings wants to develop a part of the airfield.

20 -- Mr Radmore is the DOE inspector conducting the inquiry into plans by Mr
Lipton's Greycoat Estates to redevelop London's Coin Street site.

21 -- Severiano Ballesteros is to be tournament professional at La Manga Campo
de Golf, Costa Blanca, purchased by European Ferries. Manuel Ballesteros is the
resident club professional.

22 -- The Merchant Navy Officers' Pension Fund purchased a share in an
Ohio-based property trust.

23 -- Mr Michael Heseltine, Secretary for the Environment, could not
successfully operate a bulldozer he encountered during his tour of Merseyside.

24 -- Mr Trevor Osborne, chairman of Speyhawk.

25 -- Electricity Supply Nominees is making room for an Atlantis adventure ride
in its Trocadero redevelopment scheme, Piccadilly.

26 -- The Crown Agents, in selling off their Australian portfolio, which
includes a property in Wollongong.

27 -- Chestefield Properties.

28 -- Vauxhall Cross, which has been developed by Regional Properties.

29 -- S. and W. Berisford and Edinburgh Investment Trust confront possible
problems with permafrost when redevelopment of the Billingsgate market site
finally begins.

30 -- Mr Q. Morris, a director of BP International on moving into its new
Chiswell Street headquarters.

31 -- Union leader Clive Jenkins at a Savills seminar on property.

32 -- London and Leeds -- part of the Ladbroke Group -- is converting rooms in
the Savoy Hotel into office space.

33 -- Ronald Shuck of Espley-Tyas is to spend £25m on redeveloping the Belle Vue
site in Manchester.

34 -- MEPC has taken a 50 per cent interest in 86 acres of land adjacent to the
Texas Stadium, home of the Dallas Cowboys.

35 -- St Martins Property Corporation and local partner Grollo are retaining
three historic buildings -- including a butter factory -- as part of a
redevelopment scheme in Melbourne.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1379 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Morgan Grenfell promotions

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 59 words

Morgan Grenfell and Co has made the following promotions: Mr A. P. N. Lafont to
director, Morgan Grenfell International; Mr G. W. Muir and Mr A. M. Wheatley, to
senior assistant director, Morgan Grenfell and Co; Mr P. Curry, Mr M. J. Hodges,
Mr R. M. Maslinski, Mr A. V. P. Stitt and Mr A. J. P. Sykes, to assistant
director, Morgan Grenfell and Co.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1380 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 47 words

Mr Roger Hawsworth has been appointed manager of Texaco's wholly-owned
subsidiary, STATIONS SUPREME. Mr Roger Colomb, who was previously general
manager, Stations Supreme, has been appointed managing director of Texaco Olie
Maatschappij BV, Texaco Inc's Netherlands subsidiary.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1381 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 17 words

Mr Stephen Jackson has become a partner in CAWOOD SMITHIE AND CO., stockbrokers,
at Harrogate.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1382 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 22 words

Mr Michael J. Beasley has been appointed managing director and Mr Brian J.
Thorpe deputy managing director of HOWARD HUMPHREYS.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1383 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 23 words

Mr G. F. Johnstone, the deputy underwriter for ALS Motor Policies at Lloyds, has
been appointed a director of A. L. STURGE (SERVICES).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1384 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 55 words

Silkolene Lubricants has appointed Dr R. J. Dalton to the board of DALTON AND
CO., as manufacturing director at the Belper, Derbyshire, refinery. He is not
connected with the founder family, and for the past 3 1/2 years he has been
general manager of Biospecialities, a joint company involving Tate and Lyle and
Hercules.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1385 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 34 words

Mr Ivor Wood has been appointed financial director of PURNELL AND SONS, Paulton,
part of the British Gravure Corporation within BPC. He was formerly financial
director of Eric Bemrose, Liverpool.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1386 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 31 words

Mr John S. Hardy has been elected president of the INSTITUTE OF CHARTERED
SECRETARIES AND ADMINISTRATORS for 1982. He is director and company secretary
of Baker Perkins (Holdings).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1387 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 24 words

Mr John Walker has been appointed a director of LEOPOLD WALFORD HOLDINGS. He
was previously managing director of Leopold Walford (Zambia).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1388 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 23 words

Mr M. A. N. Pejacsevich, Mr M. K. Whitaker and Mr G. Woods will join the
partnership of SIMON AND COATES stockbrokers on January 9.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1389 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 91 words

Mr Bob Lambie has been appointed managing director to WRIGHT AIR CONDITIONING
(SCOTLAND); Mr Peter Diamond becomes contracts director. Wright Air
Conditioning (London) has appointed Mr Trevor Caselton as service director and
Mr Alan McLaren becomes contracts director. Mr Chris Harris, managing director
of the London company, and Mr John Colling, managing director of Wright Air
Conditioning (Birmingham), have both joined the board of Wright Air Conditioning
(Contracting), the main board controlling the UK sales/contracting companies.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1390 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 76 words

Sir Cecil Clothier, the Health Service Commissioner (Ombudsman) for England,
Scotland and Wales, has appointed Mr G. V. Marsh as his deputy to succeed Mr
Geoffrey Weston when Mr Weston completes his period of secondment and retires
from the National Health Service at the end of March. Mr Marsh has been the
area administrator, Lambeth, Southwark and Lewisham Area Health Authority
(Teaching) since the reorganisation of the Health Service in 1974.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1391 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 14 words

Mr M. D. Nightingale has been appointed to the board of BARAOORA TEA HOLDINGS.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1392 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 13 words

Mr G. S. Kurkjian has been appointed chairman of CHAMBERS AND FARGUS.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1393 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 23 words

Mr Martin Rubach and Mr Jeff Harris have become directors of WYVERN TELEVISION
WEST, Bristol subsidiary of Wyvern Television, Swindon.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1394 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 16 words

Mr M. H. W. Wells has been appointed a non-executive director of CARCLO
ENGINEERING GROUP.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1395 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 85 words

Mr John O. Sewell is to retire as group chief executive of GEI INTERNATIONAL on
July 1. He will remain on the parent board and it is intended that he will be
appointed deputy chairman. Mr John Elwell, until recently managing director of
the cently managing director of the packaging machinery division, has been
appointed an associate director of the company and will succeed Mr Sewell. Mr
Edmund Thompson, group operations director, is also to retire on July 1 but will
continue as a director.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1396 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 15 words

The BRITISH SCHOOL OF MOTORING has appointed Mr Graham Heath as its property
director.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1397 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 16 words

Mr Hamish Gibson, has been appointed managing director of the WALTON FILM AND
VIDEO COMPANY.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1398 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 22 words

Mr R. Garrick has been appointed to the board of THE WEIR GROUP, Glasgow. He
will continue as managing director of Weir Pumps.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1399 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 78 words

Mr Peter Stevens has been appointed director of the LONDON TOURIST BOARD from
March 22. He was the first general administrator of the National Theatre of
Great Britain from 1974-79, and is currently engaged by the Gulbenkian
Foundation as a management consultant improving the cost effectiveness of the
arts in the British regions. Mr Stevens takes over from the present director,
Mr Geoffrey Smith, who will be retiring from full-time activity with the board.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1400 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 27 words

Miss Gilliam Lewis, head of the department of conservation, has been appointed
to the new post of assistant deputy director at the NATIONAL MARITIME MUSEUM.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1401 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 51 words

Mr W. G. Blyth has been appointed a director of AUDITS OF GREAT BRITAIN. He was
formerly a director and group statistician of MIL Research. Mr G. Morgan has
been appointed to the board of GRAHAM KEMP COMMUNICATIONS. He was previously
head of public relations for the Port of London Authority.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1402 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 122 words

Directors of ROYAL INSURANCE (INT.) recently established operating company
responsible for Royal's general insurance business worldwide excluding U.S., UK
and Republic of Ireland, Canada, Australia and business written by Royal
Nederland are Mr J. J. Howard (chairman), Mr J. N. H. Hay, Mr A. A. Horsford, Mr
G. R. Kellett, Mr J. K. Clarke and Mr B. H. Stott. Mr Howard, Mr Hay and Mr
Horsford are all executive directors of Royal Insurance (the holding company)
and Mr Kellett is a deputy general manager of Royal insurance. Mr Clarke is
general manager and Mr Stott is deputy general manager of Royal Insurance (Int.)
Mr P. C. Worsfold, an assistant general manager of Royal Insurance (Int.) is
company secretary.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1403 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 19 words

Mr S. I. Lowry and Mr R. S. Bowie, have become partners in HYMANS ROBERTSON AND
CO, consulting actuaries.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1404 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 22 words

Mr R. M. Bond, chief surveyor, and Mr M. R. Watton, company architect, have been
appointed directors of HIGGS AND HILL HOMES.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1405 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 22 words

Mr D. J. Forcey has been appointed a director of MEACOCK SAMUELSON AND DEVITT
(Reinsurance Brokers), part of the Devitt Group.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1406 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 16 words

Mr Peter Shaw has been promoted to commercial director of ELLIS JONES AND CO
(STOCKPORT).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1407 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 18 words

Mr G. J. Hearne (non-executive) and Mr D. R. Reeves have been appointed
directors of BPB INDUSTRIES.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1408 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 63 words

ULSTER INVESTMENT BANK has appointed Mr David Went as chief executive and Mr Leo
Conway as deputy chief executive with effect from February 1. Mr Conway will
retain responsibility for the corporate finance division in addition to his
duties as deputy chief executive. Mr Went succeeds Mr Michael Meagher who was
recently appointed deputy chief executive of Ulster Bank.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1409 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 32 words

Mr Allan C. Jeans has resumed his post as assistant director at LAZARD BROTHERS
AND CO, after completion of his two-year secondment as a secretary of the Panel
on Take-overs and Mergers.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1410 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 35 words

The BBC has appointed a Cornishman as manager of RADIO CORNWALL, due to open in
Truro towards the end of this year. He is Mr Michael Hoskin, who was previously
programme organiser at Radio Lancashire.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1411 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 34 words

Mr Ralph L. Cohen has been appointed finance director of ASSOCIATED HEAT
SERVICES, an association company of the National Coal Board, Ocean Transport and
Trading and Compagnie Generale de Chauffe.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1412 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 25 words

Mr A. C. Armitage has been appointed chief executive of NEWMAN ELECTRIC MOTORS,
Yate, Bristol. He succeeds Mr P. J. Holdstock who has resigned.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1413 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 16 words

Mr D. G. W. Towler has been appointed non-executive director of BULMER AND LUMB
(HOLDINGS).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1414 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 25 words

Mr Michael B. Beard has been appointed a director of GT MANAGEMENT. Mrs Heather
J. Roberts has been appointed a director of GT Pension Services.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1415 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 38 words

Mr Dennis Drew has been appointed deputy chairman of INCPEN (the Industry
Committee for Packaging and the Environment), in succession to Mr Donald Raine,
who has retired. Mr Drew has just retired as chairman of Bacofoil.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1416 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 13 words

Mr John S. Collecott has been appointed to the board of C. CZARNIKOW.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1417 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 15 words

Dr Eric Hall has been elected deputy managing director of STANDARD INDUSTRIAL
GROUP.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1418 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 66 words

Mr Philip Hawley has joined the board of THE ECONOMIST NEWSPAPER, parent of The
Economist and The Economist Intelligence Unit. Mr Hawley is the first American
to join the board. He is president and chief executive of Carter Hawley Hale
Stores. He is also a director of Atlantic Richfield, BankAmerica Corporation,
Pacific Telephone and Telegraph Company and Walt Disney Productions.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1419 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 24

LENGTH: 47 words

Mr J. J. Tilbrook has resigned as a director of J. F. NASH SECURITIES. Mr B. S.
Robertson has been appointed secretary by J. F. Nash Securities in succession to
Mr P. J. R. Sawfoot, who has been appointed secretary of has been appointed a
director of J. F. Nash and Partners.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1420 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Vegetable supplies hit by weather

BYLINE: Financial Times Reporter

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 25

LENGTH: 261 words

FARMERS WARNED that the recent severe weather has seriously disrupted vegetable
supplies, and the effects will be felt for many months.

One major grower of green vegetables, who has lost 25 per cent of his sprout
crop, said: "It's a pretty grim prospect -- there are likely to be lower
supplies of all green vegetables right through until early summer."

The Fresh Fruit and Vegetable Information Bureau also warned that supplies will
be badly hit. It said that prices will be higher and quality variable.

Hereford and Gloucester growers have reported a 50 per cent loss of the sprout
crop. Although it has been specially bred to resist temperatures of minus 8
degrees centigrade, temperatures in the two counties plummeted to minus 26C.

The cauliflower crop in Kent and Lincolnshire has been almost completely wiped
out, and the only reasonable quantity of British supplies will come from
Cornwall, which has so far escaped most of the snow and frost. Jersey and
Britanny will be available but the prices will reflect the shortage.

The cabbage crop has escaped much of the bad weather, but prices will rise as
the demand for cabbage as a replacement for other crops builds up. Outdoor
crops of hard white cabbages have been completely lost and prices will rise, as
the only supplies come from store.

Root crops, such as parsnips and carrots, seem to have survived most of the
flooding and prices should remain steady.

Potatoes have suffered some frost damage but while prices will be higher than
usual, there should be no shortages.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1421 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Saved by Communism

BYLINE: BY JOHN CHERRINGTON, AGRICULTURE CORRESPONDENT

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture;
Farmer's Viewpoint; Pg. 25

LENGTH: 849 words

IN MUST be a matter of deep concern to Marxists that the Communist bloc is the
main support of capitalist agriculture. Were it not for the farm imports by the
Soviet Union and certain other States paid for by Russian gold or Western
credits, world food commodity markets would be in the deepest of depressions
with production curbs the order of the day.

Not all Communist States are equally dependent on Western imports. Hungary is a
net exporter and China probably imports no more than sufficient to offset the
export of pigs to Hong Kong and a little rice to certain countries. But then
the Chinese are a special case. They are, I have always observed, among the
best farmers on earth, with an understanding second to none for growing things
in unpromising surroundings. In China they claim to be supporting 11 people on
every hectare of arable land: in the USSR, arable land supports only 0.8 of a
person per hectare.

It is true that the Chinese live on pretty modest diets by Western standards,
and no doubt they would like to have more to eat. But the success of Chinese
farming in feeding a billion people should never be under-rated.

A comparison between the Soviet Union and the EEC is most interesting.
Populations are about the same, but there the similarity ends. The Community
has an availability of 120m tonnes of cereals or its equivalent -- just under
half a tonne per person. This supplies not only farinaceous food but a fair
proportion of meat and milk as well.

The USSR has available including imports around 220m tonnes of grain or 0.8 of a
tonne per person for all requirements including animal feed. Yet the annual
consumption of meat products is only 57 kilos per head against 89 kilos in the
Community.

This underlines the basic inefficiency in production terms of Soviet livestock
farming and is well reflected in comparisons of milk production. In the EEC
24.8m cows produced 111m tonnes of milk. In the Soviet Union 43m cows produced
90m tonnes, representing a yield per cow just about half the EEC figure.

Nor is the beef production of the Soviet herd comparable with that of the EEC.
The total EEC herd amounts to 77m head, and that of the USSR 115m head. The EEC
produces a total of 8.4m tonnes of beef against the peak Soviet output to date
of 7.1m tonnes in 1978.

The U.S. herd is about the same as that of the Soviet Union, yet it produces 11m
tonnes of beef, a proportion equivalent to that in the EEC.

Soviet meat output per million pigs is about two-thirds those of the U.S. and
West Germany a typical EEC country.

Soviet wheat yields are notoriously unstable and except in 1978 about 75 per
cent of those in Canada and the U.S. which have rather similar climates and soil
types.Even so, the USSR is the world's single largest wheat producer,
responsible for between a fifth and a quarter of the global harvest.

The situation in Eastern Europe shows rather better yields per hectare and per
unit of livestock. But in no case, except that of Hungary, do they approach
those of the EEC. In Poland, yields per cow are among the lowest and meat
production in relation to feed inputs is on a par with the USSR.

Most Hungarian farming is compulsorily co-operative, like the Russian Kholk
hozes. But there are two differences. Much of the pig and poultry production
in Hungary is in private hands and the Hungarians have ploughed up land which
for centuries had been used for cattle grazing, thus liberating a store of
fertility which will last for years.

It would be simplistic to blame the defects of Eastern bloc farming on Communism
alone. There are countries where yields are very low, notably Argentina where
they could have been much higher but have been restricted for years by
government action or inaction in the sphere to taxes and prices.

It would also be naive to take as absolute truth all the statistics on which
this article is based, although they come from the UN's Food and Agriculture
Authority for the most part. The populations on the land in all the eastern
bloc countries are very much larger than they are in the West. Undoubtedly, the
rural sector will look after its own food needs before supplying the towns.
There would be a major incentive to understate actual production so that a
surplus could go safely to a black market or be consumed at home. In this
connection, the estimate of Soviet cereal waste equivalent to 30m tonnes, or 15
per cent, could well conceal substantial diversion.

There is no doubt at all that the Eastern Bloc is as well aware of the latest
techniques in food production as anyone in the West, particularly the academic
circles. What I did notice on my one visit to Russia many years ago was that
the application of modern methods did not go far beyond the colleges and
institutes.

Those responsible for the EEC's Common Agriculture Policy and the rest of world
commercial farming must hope this situation prevails for a long time if not for
ever. If the Soviet demand for surplus food did not exist, it would have to be
invented.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1422 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Strike shuts Jamaican bauxite refinery

BYLINE: BY CANUTE JAMES IN KINGSTON

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 25

LENGTH: 145 words

THE ALUMINIUM Company of America (ALCOA) has closed its 550,000 tonne bauxite
refinery in central Jamaica after a strike by workers on Wednesday. Industry
sources fear that the strike could spread, affecting the other North American
mining and refining companies operating here, and shutting down the industry.

The strike followed several months of inconclusive negotiations between trade
unions and the mining companies to replace a contract which expired at the end
of January of last year.

ALCOA spokesmen here have said the shutdown of the refinery could be long, and
that Jamaica's alumina supplies to the ALCOA system would be found from other
sources.

The threat to the industry in Jamaica, the world's third largest bauxite
exporter, could affect sales later this year of 1.6m tonnes of ore to the U.S.
for its strategic mineral stockpile.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1423 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Uruguay may import wheat

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 25

LENGTH: 111 words

DATELINE: WASHINGTON

Uruguay could return to the world market as a wheat importer in future years,
says the U.S. Agriculture Department.

In its weekly report on world production and trade, USDA says the Government of
Uruguay has announced plans to curtail intervention in the domestic wheat
market.

It says support prices under the new policy will be pegged to the international
market price for wheat, which tends to be lower than domestic production costs.

USDA says current plans could mean no government purchases of wheat in 1982-83.
These policies could discourage domestic production and return Uruguay to the
world market as a wheat importer in future years.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1424 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Loan scheme for forestry investors

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 25

LENGTH: 78 words

THE Royal Bank of Scotland has launched a new loan scheme to enable investors to
raise cash for purchasing forests and forest land with a view to developing them
for timber production.

Under Government policy for encouraging private forestry, grants are available
to encourage investment and planting and establishment costs rank for tax relief
against income from other sources. But the Bank says many investors lack the
capital to buy land for planting.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1425 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Dutch concern on farm policy

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 25

LENGTH: 70 words

THE COMMODITY Board for grains, seed and pulses said yesterday that European
Commission proposals to reform EEC farm policy are causing concern in the
Netherlands.

Mr Van Beukering, board chairman told a New Year meeting that acceptance of the
proposals, which aim to curb cereals production by limiting price increases if
output exceeds 120m tonnes a year, would be a serious disadvantage to Dutch
agriculture.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1426 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

IOD increases membership

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 25

LENGTH: 73 words

THE Institute of Directors last year recorded its highest membership figures
since 1976. Membership worldwide now stands at more than 32,000.

"In a period of recession the institute was able to increase its membership,
expand its services, intensify its representational and lobbying work and
establish new branches in the City of London, Hampshire, Dorset and the Republic
of Ireland," said Walter Goldsmith, director general.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1427 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Leading shares continue advance but Discount Houses weaken with Smith St. Aubyn
tumbling 97 to 35p

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 26

LENGTH: 406 words

Account Dealing Dates
Option
* First Declara- Last Account
Dealings tions Dealings Day
Dec 23 Jan 7 Jan 8 Jan 18
Jan 11 Jan 21 Jan 22 Feb 1
Jan 25 Feb 11 Feb 12 Feb 22

* "New time" dealings may take place from 9.30 am two business days earlier.

Brighter news on the industrial relations front via the majority vote for
acceptance of the pay offer at Ford and the General and Municipal Workers'
acceptance of the Water Board's offer supported leading equities, but achieved
little for Government Securities yesterday. Most blue chip industrials in
London stock markets were unaffected by the current deterioration in New York
values, which slipped further in yesterday's early trade.

Lack of investment demand saw leading shares drifting back from higher opening
levels, but most began to gather strength later and many closed at the day's
best. Speculative interest on bid hopefuls was a major influence throughout the
session, but the day's outstanding feature was the unprecedented collapse in
Discount Houses. This followed Smith St Aubyn's disclosure of losses which had
exhausted group reserves and a call for fresh funds through a proposed £2.7m
rights issue.

Smith St Aubyn dropped from the overnight 132p to only 35p for a massive fall of
97 to take the group's market value from £14 1/4m to around £3 3/4m. Other
Discount Houses sustained losses ranging to nearly 40 and the FT-Actuaries
sector index fell 12.8 per cent to 211.15.

The absence of a rumoured market raid failed to dampen speculative enthusiasm
for Unigate. Continued talk that the group is a target for either a raid or a
full-scale takeover took Unigate up to 115p before a close of 5 higher on
balance at 113p. Bid speculation also continued in Hoover, 10 up at 94p, but
Kwik Save eased 4 to 214p after news of the proposed near-£12m rights issue.
Measuring the continued firmness of leading shares, the FT Industrial Ordinary
share index closed 5.8 up for a two-day rise of 11.4 to 529.5.

Apprehensive about possible repercussions of the Smith St Aubyn affair, the
Gilt-edged market initially traded easier. Losses extending to 3/8 were,
howevere, reduced on talk of official support for the market. Mediums and longs
finally reverted to the overnight positions, but the shorts still closed 1/8 off
awaiting today's debut of the special low-coupon Treasury 3 per cent 1987.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1428 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Hoover A wanted

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 26

LENGTH: 332 words

Helped earlier in the week by reports of a mini-boom in washing machine sales,
Hoover A made further good progress yesterday when rising 10 afresh to 94p on
speculative buying fuelled by revived takeover hopes. Demand of a similar
nature lifted Berwick Timpo 6 to 36p. Smiths Industries added 13 to 370p in
response to investment buying. Arthur Holden improved 4 for a two-day advance
of 54 at 162p following International Paint's surprise acquisition of a 12 per
cent stake in the company at 150p per share. Applied Computers put on 7 to 155p
as did Sidlaw Industries, to 232p, but Peter Black, a good market of late, lost
5 to 211p following the interim results. The escalating row over Mr Jack Gill's
compensation payment left Associated Communications A a couple of pence off at
50p. Bowater were fairly active and 5 higher at 226p, after 231p, on revived
speculative support. Among the other leaders, Reed International were notable
for a gain of 8 at 250p.

Revived takeover hopes bolstered Henlys, 7 dearer at 104p. Elsewhere among
Motor Distributors, Ford dealers drew strength from the Likelihood of the
company's wage offer gaining general acceptance. H. and J. Quick added 4 to
46p, while Harold Perry, 82p, and Dorada, 31p, both firmed 2.

John Waddington touched 98p following the recovery in first-half profits, but
reacted sharply on consideration of the omitted interim dividend to finish 8
lower on balance at 86p. In contrast, Transparent Paper rose 4 to 30p in
response to the company's confident outlook on future trading.Elsewhere,
Associated Newspapers made further progress in front of next week's annual
results and advanced 10 to 183p.

Interest in Properties was at a low ebb and the leaders drifted a few pence
easier. Among secondary issues, Marler Estates attracted revived speculative
interest and added 3 to 60p. News that the NCB Pension Fund had increased its
stake in the company to 12.33 per cent left Percy Bilton steady at 178p.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1429 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Oils steadier

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 26

LENGTH: 195 words

Leading Oils turned steadier, quotations fluctuating narrowly before closing
without much alteration on the day. British Petroleum settled with a rise of 2
at 302p and Shell closed unchanged at 390p. Ultramar, up to 480p at one stage on
the Moray Firth drilling report, drifted off to close 2 cheaper on balance at
473p. Among the more speculative exploration issues, Flair Resources rallied 10
to 180p. Pict, in contrast, gave up 5 further to 145p and Sun (UK) Royalty
weakened 10 to 140p.

Among Financial Trusts, Kitchen Taylor featured with a jump of 18 to 120p in
response to the better-than-expected preliminary results. R. P. Martin, on the
other hand, gave up 10 to 305p.

P & O Deferred were briskly traded again and opened higher at 138p before
falling to 131p in the absence of bid developments and settling at 134p for a
gain of a penny. Elsewhere in Shippings, Lyle firmed 5 to 295p and Ocean
Transport put on 4 to 109p.

A couple of outstanding firm features emerged in Plantations. Sogomana jumped
30 to 455p, after 470p, following news of a possible sale of assets and, in
Teas, Surmah Valley stood out with again of 13 to 113p.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1430 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Golds drift

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 26

LENGTH: 178 words

Mining markets remained in the doldrums as a general lack of interest followed
further poor performances in precious and base-metal markets.

South African Golds drifted throughout the day, depressed by the $5.5 fall in
the bullion price to $397 an ounce.

Actual selling pressure was minimal and some light U.S. buying interest was
reported in after-hours' trading but losses at the close were sufficient to
lower the Gold Mines index a further 1.9 to 299.0; this is the first time the
index has fallen below the 300 level since the end of November.

Prominent heavyweights included Hartebeest and President Brand, which fell 3/8
apiece to £26 1/8 and £17 3/4 respectively, while in the medium- and
lower-priced issues Blyvoor dropped 10 to a 1981/82 low of 509p.

South African Financials mirrored the pattern in Golds. Anglo American
Corporation eased 5 more to 650p. De Beers closed unaltered at 350p, after 352p
despite expectations of a heavy fall in the 1981 world diamond sales figure
which is due to be announced in the next few days.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1431 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

$ and £ strong

SECTION: SECTION II; Companies and Markets; Currencies, Money and Gold; Pg. 30

LENGTH: 558 words

Dollar showed a firmer trend as Eurodollar interest rates rose, and the Federal
funds overnight rate increased to 12 1/4 per cent in early New York trading.
The foreign exchange market was very quiet however, with most currencies moving
within a narrow range.

Sterling improved, gaining ground against Continental currencies, and only
easing slightly against the strong dollar.

Currencies recorded little movement within the European Monetary System, apart
from a weakening of the Irish punt. Market sources suggested that there is also
nervousness about the Belgian franc, which remained the weakest EMS member.

DOLLAR -- Trade-weighted index (Bank of England) 107.6 against 106.8 on
Wednesday and 110.4 six months ago. Three month Treasury bills 11.66 per cent
(14.60 per cent six months ago). Annual inflation rate 9.6 per cent (10.2 per
cent previous month) -- The dollar rose to DM 2.2615 from DM 2.2465 against the
D-mark; to FFr 5.7425 from FFr 5.7060 against the French franc; to SwFr 1.8310
from SwFr 1.8090 in terms of the Swiss franc; and to Y222 from Y219.60 against
the yen.

STERLING -- Trade-weighted index 91.7 against 91.6 at noon and at the opening,
and 91.5 at previous close (93.5 six months ago). Three-month interbank 15 5/8
per cent (13 7/16 per cent six months ago). Annual inflation rate 12 per cent
(11.7 per cent previous month). -- The pound opened at $1.9145-1.9155, and fell
to a low of $1.9110-1.9120 in the morning. Demand for sterling pushed it to a
peak of $1.9200-1.9210 in late trading, and it closed at $1.9195-1.9205, a fall
of 40 points on the day. The pound rose to DM 4.3450 from DM 4.3250; to FFr
11.0250 from FFr 10.9775; to SwFr 3.5175 from SwFr 3.4825; and to Y426.50 from
Y422.50.

D-MARK -- EMS member (second weakest). Trade-weighted index 122.4 against 122.6
on Wednesday and 115.6 six months ago. Three-month interbank 10.55 per cent
(12.975 per cent six months ago). Annual inflation 6.3 per cent (6.6 per cent
previous month). The D-mark rose against three of its EMS partners at the
Frankfurt fixing, weakened against one, and was unchanged against two. The
Bundesbank sold $9.7m when the dollar rose to DM 2.2625 from DM 2.2479.
Sterling rose to DM 4.3320 from DM 4.3240. In terms of the D-mark the guilder
improved to 91.21 per 100 from 91.13, while the French franc and Italian lira
were unchanged.

JAPANESE YEN -- Trade-weighted index 143.9 against 144.9 on Wednesday and 141.7
six months ago. Three-month bills 6.53125 per cent (7.46875 per cent six months
ago). Annual inflation 3.6 per cent (4.1 per cent previous month) -- The yen
weakened against the dollar in Tokyo, and may have received some support from
the Bank of Japan. After touching a peak of Y221.25, the U.S. currency finished
at Y221.10, compared with Y218.85 on Wednesday.

FRENCH FRANC -- EMS member (strongest). Trade-weighted index 80.7 against 80.8
on Wednesday and 82.5 six months ago. Three-month interbank 15 per cent (17 3/4
per cent six-months ago). Annual inflation 14.3 per cent (14.1 per cent
previous month). -- The franc improved against four of its EMS partners and
weakened against two at the Paris fixing. It also lost ground to the dollar and
sterling, but rose against the Swiss franc. In terms of French francs the
dollar was fixed at 5.7445 (5.7070).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1432 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

UK rates steady

SECTION: SECTION II; Companies and Markets; Currencies, Money and Gold; Money
Markets; Pg. 30

LENGTH: 365 words

HIGHLIGHT: London clearing bank base lending rates 14 1/2 per cent (since
December 4)

Short-term interest rates were little changed in London yesterday in relatively
quiet trading. Despite a projected shortage of funds in the money market
overnight money in the interbank market sank to a low of 5 per cent at the
close, having opened at 14 1/2-14 3/4 per cent. Money was quoted around 14 per
cent at lunch time. Longer term rates were slightly easier where changed with
one week money closing at 14 3/8-14 5/8 per cent compared with 14 5/8-14 7/8 per
cent and one month at 15 1/8-15 1/4 per cent from 15 3/16-15 5/16 per cent while
the three-month rate was steady around 15 5/8 per cent.

The Bank of England gave an early forecast of a shortage of around £250m with
bills maturing in official hands and a net take up of Treasury bills draining
£235m and Exchequer transactions a further £175m. These were offset by a fall
in the note circulation of £105m. The Bank gave assistance in the morning
totalling £246m, comprising purchases of £10m of local authority bills in band 1
(up to 14 days) at 14 3/8 per cent and £46m of eligible bank bills in band 1 at
14 3/8 per cent. In band 2 (15-33 days) it bought £190m of eligible bank bills
at 14 3/8 -14 13/32 per cent. There was no further assistance given during the
afternoon.

In Frankfurt credit policies and key lending rates were left unchanged after
yesterday's meeting of the Bundesbank central council. No changes and been
expected by the market. Call money was quoted at 10.10-10.30 per cent down from
10.30-10.40 per cent on Wednesday as short term funds remained in ample supply.
There was no attempt by the authorities to drain reserves. The surplus of funds
was partly attributed to banks' comfortable positions with regard to fulfilling
reserve requirements and also a total of DM 15 1/2bn in repurchase agreements
currently running. However rates could firm if the authorities fail to replace
one repurchase plan of DM 3.4bn, unwinding on January 12.

In Brussels the Belgian National Bank reduced rates on one-, two- and
three-month Treasury bills all to 15 per cent. Previous rates were 15 1/2 per
cent for one-month, and 15 1/4 per cent on two- and three-month bills.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1433 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Further fall

SECTION: SECTION II; Companies and Markets; Currencies, Money and Gold; Gold;
Pg. 30

LENGTH: 144 words

Gold fell $5 1/2 to $396 1/2-397 1/2 in the London bullion market yesterday. It
opened at $397 1/2-398 1/2, the highest level of the day, and was fixed at
$396.25 in the morning, and $396.50 in the afternoon. The metal touched a low
point of $394 1/4-395 1/4, reflecting general European selling.

In Paris the 12 1/2 kilo gold bar was fixed at FFr 75,000 per kilo ($406.04 per
ounce) in the afternoon, compared with FFr 75,000 ($406.09) in the morning and
FFr 74,700 ($407.11) Wednesday afternoon.

In Frankfurt the 12 1/2 kilo bar was fixed at DM 28,950 per kilo ($398.00 per
ounce) against DM 29,180 ($404.02) previously, and closed at $396-397 compared
with $401 1/2-402 1/2.

In Luxembourg the 12 1/2 kilo bar was fixed at the equivalent of $396 per ounce,
compared with $402.50.

In Zurich gold finished at $396.399, against $400-403.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1434 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Discount Houses flat

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 26

LENGTH: 849 words

Contracts completed yesterday in Traded options amounted to 1,792, the majority
of which were transacted in calls of which BP and Courtaulds recorded 288 and
299 respectively.

Asset Special Situations Trust made a quiet market debut at 29 1/2p compared
with the placing price of 30p. Elsewhere in the new issues sector, Asprey rose
50 to 875p following the interim results.

The shock statement from Smith St Aubyn completely demoralised the Discount
House sector. Following a 30 minute stoppage in business while jobbers studied
the implications prices re-opened sharply lower and continued to retreat on
fresh selling. Smith St Aubyn closed at the day's lowest of 35p, down 97.
Elsewhere selected issues rallied slightly towards the close, but falls ranging
to 38 were sustained with Gillett that much down at 180p. Cater Allen fell 30
to 275p, while Gerrard and National relinquished 23 to 245p and Seccombe
Marshall and Campion 15 to 210p. Alexanders shed 13 at 230p. Union showed
resilience in ending only a net 5 lower at 400p, after 385p. Among the
smaller-priced issues, Clive softened a couple of pence to 17p, after 16p, while
Jessel Toynbee gave up 5 to 58p as dis King and Shaxson, to 78p.

The rest of the banking sector passed a quietly dull session. The major
clearers lacked support and closed with minor falls, while Royal Bank of
Scotland met profit-taking and lost 3 to 194p awaiting the Monopolies decision
on the bid situation. Guinness Peat at 93p, gave up 2 of the previous day's
Press-inspired gain of 7.

Scottish and Newcastle provided a late firm feature in otherwise subdued
Breweries, rising 2 1/2 to 53p on revived rumours of a dawn raid. Among
regionals, Higsons shed 5 to 70p, after 68p, following the bearish tone of the
chairman's annual review.

Blue Circle held at 504p, the company's intention to sell its sand and gravel
interest making no apparent impact.Other leading Building issues were inclined
firmer in the late trade.

ICI slipped to 288p before late demand left the close a net 10 up at 300p.
Elsewhere in the Chemical sector, Hickson and Welch gained 12 to 212p in
response to the better-than-expected preliminary results.

Leading Stores attracted steady institutional support during the afternoon
session and closed at the day's best. Gussies A remained to the fore with a
gain of 8 at 443p, while Marks and Spencer rose 5 to 130p. British Home, 121p,
and Burton, 136p, added 3 apiece, and W. H. Smith ended 7 to the good at 155p,
MFI, interim results due later this month, added a few pence to 62p, but Bakers
Household turned down after disappointing preliminary figures and closed 9 lower
at 158p. Polly Peck came in for renewed speculative support and rose 20 at
375p, with Cornell Dresses 11 up at 163p in sympathy. Mail-orders also took a
turn for the better and gains of 6 were noted in Grattan, 98p, and Freemans,
120p.

Persistent profit-taking and lack of fresh support took its toll on Amstrad
which touched 190p before closing 22 down for a two-day loss of 35 to 195p.
Elsewhere in Electricals, Quest Autmation declined 7 for a two-day relapse of 40
to 93p following the dismal half-year results. Electronic Rentals softened a
penny to 84p, after 82p, following the interim results but renewed support left
George H. Scholes up 6 more at 258p. Revived hopes of a bid from Tyco
Laboratories left Muirhead a few pence dearer at 112p. Philips Lamps featured
the leaders with a rise of 20 to 447p and Plessey continued firmly at 362p, up
2. On the other hand, Thorn EMI, first-half figures due next Thursday,
cheapened 2 to 458p, while GEC declined 4 at 806p.

Leading Engineers edged a few pence higher in quiet trading. GKN firmed 4 to
165p and John Brown put on 3 more to 58&, while Hawker ended a couple of pence
dearer at 322p. Elsewhere demand in a difficult market left G. M. Firth 10
higher at 195p. Birmingham Pallet contrasted with a fall of 6 to 34p on the
annual loss and passing of the dividend. United Engineering, the subject of
profit-taking recently, revived with a gain of 7 to 260p. Other firm spots
included Lake and Elliot, 3 up at 39p, and Brockhouse, 1 1/2 dearer at 30 1/2p.

Up 10 late on Wednesday on speculative buying, Unigate slipped to 106p in the
absence of the rumoured dawn raid on the company before another speculative
flurry left the close a net 5 up at 113p, after 115p. Elsewhere in the Food
sector, Kwik Save dropped to 210p before settling just 4 cheaper on balance at
214p on the £11.88m rights issue proposal; William Low jumped 10 to 170p on
speculation that the rights issue proceeds might be used to launch a takeover
bid for the company. Other bid favourites attracted new-time interest, RHM
adding 1 1/2 to 60p, Fitch Lovell 3 to 78p, and Singlo 2 to 35p. Cullens put on
7 to 235p following Press comment.

Leading Hotels and Caterers closed narrowly mixed.Grand Metropolitan softened a
couple of pence to 182p, but Trusthouse Forte improved that much, to 121p.
Ladbroke also hardened 2, to 130p, following the asset sales.

LANGUAGE: ENGLISH

GRAPHIC: Graph, no caption

Copyright 1982 The Financial Times Limited

1435 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Share Stakes

SECTION: SECTION II; Pg. 18

LENGTH: 23 words

Percy Bilton -- The National Coal Board Pension Funds purchased a further 1m
ordinary shares and now hold 4,632,700 (12.33 per cent).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1436 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Share Stakes

SECTION: SECTION II; Pg. 18

LENGTH: 36 words

Crosby House Group -- Jazerite Holdings and subsidiaries, have sold 4,750
ordinary shares and £77,978 10 per cent convertible unsecured loan stock
1987/90. Accordingly they no longer have a notifiable interest.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1437 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Share Stakes

SECTION: SECTION II; Pg. 18

LENGTH: 27 words

Smith Whitworth -- CHI Securities became interested on January 4 in a further
10,000 ordinary bringing the aggregate holding to 727,000 (18.175 per cent).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1438 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Share Stakes

SECTION: SECTION II; Pg. 18

LENGTH: 23 words

Bonusbond Holdings -- Following sale of 25,000 ordinary shares the interest of
Vandan is 680,000 ordinary shares (19.42 per cent).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1439 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Share Stakes

SECTION: SECTION II; Pg. 18

LENGTH: 37 words

Eagle Star Holdings -- On December 23 Allianz Versicherungs -- AG transferred
its interest in 38,248,615 ordinary shares to a company incorporated in England
which is in the process of being renamed Allianz Holdings.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1440 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Share Stakes

SECTION: SECTION II; Pg. 18

LENGTH: 18 words

Badulipar Tea -- Longai Valley Tea has acquired 20,950 ordinary shares and 2,000
preference shares.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1441 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Share Stakes

SECTION: SECTION II; Pg. 18

LENGTH: 50 words

British Electric Traction -- Mr G. A. H. Watts, director, has notified the
company that, as a result of the attainment of majority by a minor, he is no
longer beneficially interested in 218,304 deferred ordinary shares, but his
non-beneficial interests have increased by 175,804 such shares.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1442 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Share Stakes

SECTION: SECTION II; Pg. 18

LENGTH: 27 words

R. P. Martin -- P. J. Watling, director through Sinjul Nominees, has disposed of
45,000 ordinary shares at 300p, leaving holding 199,009 (2.13 per cent).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1443 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Share Stakes

SECTION: SECTION II; Pg. 18

LENGTH: 15 words

Steinberg Group: Mr D. Wolfson, director, holds 260,000 ordinary (1.99 per
cent).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1444 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Share Stakes

SECTION: SECTION II; Pg. 18

LENGTH: 24 words

Wolverhampton Steam Laundry: Mr T. Watson resigned from the board and
subsequently disposed of his holding of 130,696 shares in the company.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1445 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

Share Stakes

SECTION: SECTION II; Pg. 18

LENGTH: 23 words

Globe Investment Trust: The NCB Pension Funds yesterday purchased 250,000
ordinary, making holding 36,224,043 shares (22.15 per cent).

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1446 of 2315 DOCUMENTS

Financial Times (London,England)

January 8, 1982, Friday

BOARD MEETINGS

SECTION: SECTION II; UK Company News; Pg. 19

LENGTH: 128 words

The following companies have notified dates of board meetings to the Stock
Exchange. Such meetings are usually held for the purpose of considering
dividends. Official indications are not available as to whether dividends are
interims or finals and the subdivisions shown below are based mainly on last
year's timetable.

TODAY

Finals -- Ley's Foundries and Engineering, Robert H. Lowe.

FUTURE DATES
  Interims: --
Austin (James) Steel Jan 20
Banks (Sidney C.) Jan 26
Gresham Investment Trust Jan 13
Magnet and Southerns + Jan 11
Midland Trust Jan 20
Stroud Riley Drummond Jan 18
Symonds Engineering Jan 14
  Finals: --
Imperial Group Feb 11
Kenning Motor Jan 12
Lovell (Y. J.) Jan 21

+ Amended.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1447 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Reagan may raise taxes to curb budget deficit

BYLINE: BY REGINALD DALE, U.S. EDITOR, IN WASHINGTON

SECTION: SECTION I; Pg. 1

LENGTH: 542 words

HIGHLIGHT: President Ronald Reagan may reluctantly increase "some" taxes and
impose further spending cuts, to keep the U.S. budget deficit below an
unprecedented $100bn in each of the next two financial years, Mr Donald Regan,
the Treasury Secetary, suggested yesterday.

The White House, which was yesterday still putting the finishing touches to
President Ronald Reagan's proposals for the fiscal year 1983, said no final
decision had been reached.

Mr Reagan's belief in tax-cuting as a stimulus to the economy has so far led him
to resist pressure for such a move, despite the enormous deficits looming ahead.

Mr Reagan, however, said in a TV interview that he thought there would be tax
increases - alongside continuing increases in defence spending.

Mr Regan made it clear that Mr Reagan's overall three-year plan for cuts in
personal and business taxes - one of the cornerstones of his economic programme
- would not be affected.

He indicated that the President was also still resisting pressure from key
Republicans in Congress to introduce a windfall profits tax on natural gas,
which, it has been estimated here, could bring in up to $20bn a year as natural
gas prices are do-controlled.

Options for increases included excise taxes on beer and wine, Mr Regan said.The
Administration has also studied "user" fees for those who need public services
like coast guards and fresh measures to close tax loopholes.

Mr Regan said that if the proposals the Administration is working on were
accepted, deficits for the two fiscal years 1983 and 1984 would be "much lower"
than the $100bn area. 1984 is the year by which Mr Reagan originally promised
to bring the budget into balance.

Unofficial administration estimates last month put the 1983 deficit at a
staggering $152bn and the 1984 figure even higher at $162bn. Mr Regan said
yesterday however that these were "raw" figures, which had "no semblance" to
what the President's budget message would be when he delivers it to Congress on
February 8.

Mr Regan rejected Tuesday's prediction by Dr Henry Kaufman, the Wall Street
economist, that U.S. interest rates this year would return to last year's near
record levels of more than 20 per cent.

With the administration getting inflation under control, interest rates would be
"coming down to be much lower than they are right now," Mr Regan said. He
concluded that the they could rise to some extent at times, in 1982, but
insisted that they would not go up to "any where near where they were."

Mr Regan confirmed that the president was still determined not to let his
budgetary problems interfere with his plans for a massive build up of America's
defences - despite the likelihood of strong opposition in Congress at a time
when social programmes are subject to continuing cuts.

The target for defence spending in fiscal 1983 was a 15 per cent increase - or 7
per cent after inflation - bringing total obligational authority to $245bn, Mr
Regan confirmed.

At the White House, Mr Larry Speakes, the deputy press secretary, said that Mr
Reagan would make his final decisions on the fiscal 1983 budget by the end of
the week. The only way to get control of the budget was to "get hold to these
escalating entitlement programmes," he added.

Entitlement programmes are those which provide automatic benefits to all who
qualifiy, like pensions and food stamps. Mr Speakes insisted, however, that any
cuts in these programmes would not cause hardship to the genuinely needy.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1448 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

France seeks 'prices truce'

BYLINE: By David Housego in Paris

SECTION: SECTION I; Pg. 1

LENGTH: 346 words

The French Government is to try a new strategy to bring the level of inflation
down from 14 per cent last year to 10 per cent by the end of 1982.

M Jacques Delors, the Finance Minister, set the plan out at the weekly Cabinet
meeting yesterday. It attempts to gain union co-operation in accepting lower
wage settlements in return for the continued holding down of prices in some
sectors.

Price controls on a substantial number of services which were imposed for six
months last October, are to be lifted, but the authorities will seek price
moderation agreements in specific sectors.

The strategy focuses on keeping down price increases in the retail and service
sectors and also limiting rises in public sector tariffs.

Manufacturing industry is exempted from controls because the government
recognises the need to rebuild profit margins. Companies are still being asked,
however, to moderate their increases.

In line with this policy, the Ministry of Finance announced that the six-month
freeze on many service sector prices would be relaxed for those industries which
agreed to limit price rises this year.

Among the industries which have already agreed to keep their total price
increases to 10 per cent this year are the hotel and restaurant industries, dry
cleaners and car repairers. The Government is hoping to reach simila accords
with some 15 other service groups.

Retailers are being pressed to accept a voluntary "price truce" under which they
undertake to freeze the prices of a wide range of consumer goods for three
months. This is being backed by an extensive radio and TV publicity campaign.

The Government made it clear yesterday that public sector corporations will only
be allowed to make phased and limited increases in their charges.

The new measures coincide with a slowing of the rate of inflation. The
Government pointed out that inflation had declined to 12 per cent on an annual
basis for the last quarter of 1981 as compared with 14 per cent for the year as
a whole. Final figures are not yet available.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1449 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Bonn promises aid if Poles lift emergency

BYLINE: BY JONATHAN CARR IN BONN

SECTION: SECTION I; Pg. 1

LENGTH: 646 words

WEST GERMANY is ready to work with its Western partners to give "substantial
financial aid" to Poland if Warsaw's military leadership permits a return to
economic and social reform.

Herr Hans Dietrich Genscher, the West German Foreign Minister, made this pledge
in a speech yesterday shortly after his return from talks with Chancellor
Schmidt and President Reagan in Washington.

Herr Genscher strongly urged the Polish leaders to take the aid offer seriously,
and to back up with deeds their repeated words about returning to a policy of
reform and renewal.

He made clear that this involved lifting martial law, releasing those detained
since the state of emergency was imposed in Poland on December 13, and
permitting further dialogue with Solidarity and the Catholic church.

These demands were made both by the EEC countries after a meeting of foreign
ministers in Brussels on Monday and in the statement issued by Herr Schmidt and
President Reagan on Tuesday.

Bonn made clear publicly last month that it will withhold new economic aid to
Poland "so long as the repressive measures there persist" a hint that such aid
might be forthcoming once martial law were lifted.

However, Herr Genscher's latest speech puts a much stronger emphasis on the
prospect of future aid, reflecting Bonn's belief that this - rather than
imposition of economic sanctions - can bring a change in Warsaw's present
course.

Herr Genscher did not give details of the kind of sums he had in mind. It is
known that Bonn already has about DM 1bn ($445m) in the 1982 budget earmarked to
cover payments of state guarantees on commercial credits given to the Poles.

It is believed that provision has also been made elsewhere in the budget for aid
to Poland, although its evidence has not officially been acknowledged.

Herr Genscher's return from the U.S. has coincided with renewed attacks from the
Bonn opposition on the Government's policy over Poland, above all from the
Bavarian leader Herr Franz Josef Strauss.

Herr Strauss accused Bonn of destroying West Germany's standing in the Atlantic
alliance, offending President Reagan and, as he put it, of "crawling on the
floor" before Communist power politics.

Herr Genscher said in his speech that on the contrary, events this week showed
that Bonn was agreed on Poland with both its European and U.S. partners. He
warned against artificially talking a "crisis of the Communist system" into a
crisis of the West.

* Reginald Dale, U.S. Editor, from Washington: Mr Alexander Haig, the Secretary
of State said President Reagan and Chancellor Schmidt had agreed in their talks
here on Tuesday that the U.S.-Soviet negotiations in Geneva on European nuclear
missiles should go ahead despite the Polish crisis.

The talks on intermediate range missiles were "in a very special category of
East-West relations," and had to be dealt with in a different context from
normal relations. Mr Reagan and Herr Schmidt agreed that the talks should be
called off only "under the most exceptional of circumstances," which did not
exist at present, he said.

Mr Haig, who had a separate meeting with Herr Schmidt in Washington yesterday,
added that in present circumstances he was also inclined to go ahead with his
planned meeting with Mr Andrei Gromyko, the Soviet foreign minister, in Geneva
on January 27, at which the two men are to explore the possibility of a new
round of strategic arms limitation talks. He said President Reagan felt
strongly that communication between governments was perhaps more important at
times of crisis than at other times.

* Our Moscow Correspondent writes: the Soviet Union last night announced an
"easy-term credit" to Poland under a new trade protocol for 1982, to help the
Poles "through a difficult situation." No indication was given of the size or
terms of the credit.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1450 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Juan Carlos tries to retain military loyalty

BYLINE: BY ROBERT GRAHAM IN MADRID

SECTION: SECTION I; Pg. 1

LENGTH: 402 words

KING JUAN CARLOS yesterday made a major effort to win the full co-operation and
loyalty of the armed forces in a speech marking the traditional military
celebration of Epiphany. The tone of the King's speech throughout was low-key
and in stark contrast to the firm call to order he issued last year, just before
the February coup attempt.

Since the abortive coup, the King has devoted much time and energy trying to
appease the armed forces and regain the confidence of those elements who felt
that his rejection of a military-backed government was a betrayal.

The King's speech, delivered in the presence of all senior members of the armed
forces at the royal palace in Madrid, gave emphasis to concern felt by the
military over allegedly unfair and sensational treatment in the media.

The King implicitly criticised some media coverage, stating that the armed
forces had been subjected to "exaggerated attention." He also sympathised with
the difficulties of the military in being bound by restrictions in their ability
to reply to what they regarded as unfair or unjust press treatment.

The King balanced this by reminding the armed forces that they were not the only
body affected by the transition to democracy. Nor, he said, did the armed
forces have an exclusive monopoly of patriotism; and no matter how much they
might disagree with what was happening in Spain, they were bound to behave in a
constitutional way and not to resort to acts of indiscipline.

The King also denounced the circulation of pamphlets within the armed forces
that sought to create divisions. Many of these pamphlets have been hostile to
the King himself and have been strongly anti-democratic in tone. The King's
denunciation of this pamphleteering and remour-mongering underlines the extent
of his concern over continued unrest.

He further went out of his way to call upon the military to achieve a better
understanding among themselves.

The theme of media treatment of the armed forces has also dominated a series of
statements made by the Defence Minister, Sr Alberto Oliart, during the Epiphany
ceremonies which were held yesterday and on Tuesday.

This appears to be directly connected with the tension created by the
publication in December of a manifesto signed by 100 officers and NCO s
protesting against media treatment and sympathising with those involved in the
abortive coup.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1451 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Russia seeks ferry link with Germany

BYLINE: BY LESLIE COLITT IN BERLIN

SECTION: SECTION I; Pg. 1

LENGTH: 217 words

THE SOVIET UNION has invited West Germany to begin formal talks on opening a
rail-ferry link between the Soviet Baltic seaport of Klaipeda and a West German
port. It would allow the Soviets to ship goods across the Baltic which until
now have had to be sent by rail across Poland, where Moscow has complained of
severe rail bottlenecks and high transit fees.

The Soviet Transport Ministry extended an invitation for "talks between experts'
to its counterpart in Bonn, where a reply is being prepared. The West German
Transport Ministry said it could not "rule out" such talks taking place

Last summer, the Soviet Transport Minister held talks in Bonn and visited Baltic
and North Sea ports which are showing keen interest in the project: Kiel,
Lubeck, Flensburg, Bremen and Hamburg.

When the Soviet President, Mr Leonid Brezhnev, was in Bonn in November, the
subject was again raised by his first deputy Prime Minister, Mr Ivan Archipov.

He told West German industrialist and economic officials that Moscow wanted to
transport about two million tons of goods annually across the Baltic Sea in
co-operation with a West German shipping company.

A city economics official in Kiel estimated it would cost about DM 100m
($44.23m) to build the necessary rail-ferry installations.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1452 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

U.S. business satellite network to be opened to UK companies

BYLINE: BY JASON CRISP IN LONDON

SECTION: SECTION I; Pg. 1

LENGTH: 409 words

BRITISH TELECOM announced plans yesterday to link companies in the UK with
Satellite Business Systems, a U.S. private communications network which is
jointly owned by International Business Machines, Comsat and Aetna Life and
Casualty.

If approved by the U.S. Federal Communications Commission, the link-up will make
possible transatlantic video conferences between SBS subscribers - some of
America's biggest companies - and companies in the UK and possibly elsewhere in
Europe. Data transmission between the U.S. and UK would also become much easier
for those companies.

Satellite Business Systems said yesterday that it had applied to the U.S.
Federal Communications Commission for authority to link with the UK. SBS has
already applied to link with companies in Canada. It hopes to have approval by
the summer and start services to both countries by the end of the year.

SBS provides a wide range of advanced communications services and is aimed at
large companies. It uses a direct link by satellite between small dish aerials
mounted on the roofs of customers' offices.

According to SBS, a number of its customers - which include IBM itself, General
Motors and a number of banks - had asked to interconnect with the UK; and UK
companies have asked British Telecom for links with SBS.

If the FCC approves, the SBS communications system would be linked to Britain
from a U.S. East Coast earth station via an ordinary telecommunications
satellite over the Atlantic. The link-up would probably be used for data
transmission although it could also be used for video conferences. One of the
limitations would be lower transmission speeds

British Telecom will offer a number of services under the general titel
X-Stream. These include: Megastream: high-capacity private circuits which might
be used by large banks, finance houses and industrial firms for transmitting
large quantities of data around the country.

Kilostream: substantially less capacious private circuits which will be
available by the end of the year and like London with 30 main business centres
by the end of 1983.

Switchstream: the packet switch service which started last year, and is being
extended.

Satstream: a service similar to SBS linking European businesses by satellite.
In a recent trial the Financial Times sent facsimile pages from a dish aerial on
the roof of its London headquarters, Bracken House, to its printers in
Frankfurt.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1453 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Questionmark hangs over role of Communist party

BYLINE: BY OUR FOREIGN STAFF

SECTION: SECTION I; European News; Crisis In Poland; Pg. 2

LENGTH: 637 words

THE FUTURE role of the Communist Party in Poland is rapidly becoming one of the
most important problems to be faced by the military authorities as they look
beyond the immediate task of making the country function under martial law.

Reports from Warsaw say that some senior party officials have discussed the
possibility of disbanding the Party altogether.

This drastic suggestion was apparently made during a visit by a high-level
Hungarian delegation to Poland last week. Mr Janos Kadar, Hungary's President,
apparently warned General Wojciech Jaruzelski some months ago that the
Solidarity union could not be controlled without the imposition of martial law.

The corollary of this is the Communist Party's continuing collapse under martial
law, even though hardliners in Poland and commentators in Moscow have been
urging the party to revive itself. But there are reports of party membership
decreasing sharply even during the past four weeks. The number of members is
now reckoned to be about 1:5m compared with 3m in July last year.

Thousands of members of the Warsaw branch, considered one of the most
conservative, are said to have resigned. In Gdansk, two thirds of the
university teaching staff are believed to have handed in their cards, while in
many factories baskets have been put out to collect returned party cards.

Meanwhile, General Jaruzelski has been exploring ways of establishing a new
political framework within which the Communist Party would play a less exclusive
role than hitherto, perhaps in some form of alliance with other political
parties. Recent efforts to set up a Christian Democrat Party have already been
scotched by discouragement from the Church but may indicate the way in which the
authorities are thing.

At Monday's first meeting of a new socio-economic committee set up under the
chairmanship of Mr Mieczyslaw Rakowski, the Deputy Premier, the members included
the leaders of the Democratic Party and of the Peasants' Party.

These tiny parties were formerly "safe" components of the coalition that
governed Poland with the Communists before martial law. Recently, however, they
had been trying to establish a more independent role.

The general has also set up two other committees to explore ways of creating a
new political framework. One is led by Mr Stefan Olszowski, the hardliner party
poltiburo member, who is trusted by Moscow as much as he is hated by Solidarity.
He can be expected to argue for a reorganisation of the Communist Party as it
stands.

The other committee is headed by Mr Hieronim Kubiak, an intellectual from Krakow
who is probably the least conformist member of the revamped politburo which
emerged from last July's party congress and who had earlier suggested that the
party should share power with other elements of Polish society.

Warders guarding Solidarity internees at a camp in Strzebielinek have twice had
to be replaced because they are being "demoralised" by the inmates, according to
recent visitors. The morale of the internees is said to be high, with many
wearing Solidarity badges decorated with pictures of prison bars.

At another camp, at Pruszcz, younger members of the union had been held in
tents, according to the same report.

Meanwhile the recent photographs of violence on the Baltic coast during the
first week of martial law are being buttressed by details of injuries. A raid
against workers at the Gdansk oil refinery is said to have caused some deaths,
with 10 serious casualties known to have keen admitted to hospital. Workers are
said to have been forced to lie on the snow in chains, while some were beaten
with iron bars.

* The elder son of Mr Rakowski has asked for politcail asylum in Spain, a week
after the politician's younger son defected in West Germany.

LANGUAGE: ENGLISH

GRAPHIC: Illuctration, no caption

Copyright 1982 The Financial Times Limited

1454 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Calvo Sotelo to seek speed-up of EEC talks

BYLINE: BY JOHN WYLES IN BRUSSELS

SECTION: SECTION I; European News; Pg. 2

LENGTH: 516 words

SR LEOPOLDO CALVO SOTELO, the Spanish Prime Minister, will today launch a
personal initiative here aimed at speeding up Spain's troubled negotiations to
join the European Community.

Making his first visit to Brussels as Prime Minister, Sr Calvo Sotelo will urge
both the Belgian Government - now occupying the Presidency of the EEC Council of
Ministers - and the European Commission to make every effort to complete the
negotiations this year. Spain could then become a member by January 1, 1984.

He is expected to stress the growing disillusionment in Spain about EEC
membership because of the lack of progress in the negotiations which began
nearly three years ago.

In public relations terms, Sr Calvo Sotelo may find his talks here less fruitful
than the visit to London he will make tomorrow, which is expected to yield a new
Anglo-Spanish agreement on a date for reopening the border between Spain and
Gibraltar. This agreement could also raise the prospect of a lifting of
Madrid's sanctions against the Rock.

Sr Calvo Sotelo was the Spanish minister in charge of EEC entry negotiations
when they first started, and his decision to make a personal appeal for speedier
progress is seen as a measure of the rising concern in Madrid at the present
situation.

Essentially, the negotiations, and also those with Portugal, have been held up
since June 1980 when France, with the silent support of most other member
states, decreed that none of the major issues could be settled until the
Community had agreed its own internal reforms of agriculture and the budget.

Since then, the Ten's commitment to Spanish membership has increasingly seemed
more rhetorical than real. Last November's EEC summit in London upset the
Spaniards, rather than reassuring them, by reaffirming the Ten's commitment to
accepting both Spain and Portugal as members without any mention of a target
date nor a promise to complete negotiations as quickly as possible.

Only European Commission President Gaston Thorn has made any mention recently of
the 1984 target date and that was during a visit to Madrid last week which some
Spanish officials claim did little to help maintain public enthusiasm for EEC
membership.

M Thorn's strees in public interviews on the Community's internal problems did
not help the EEC's image in Spain. In addition, it is said he gave the
impression that the Commission itself could bring about Spanish membership by
1984, skating over the fact that the final decision rested with member
governments.

In a bid to satisfy the Spaniards, the Belgian presidency is expected to try to
push the Community towards final agreement on a number of the relatively less
controversial aspects of Spanish membership such as regional policy, movement of
capital and harmonisation of legislation.

This would leave the key agricultural and fisheries issues to be negotiated in
the second half of the year by which time the Ten are supposed to have reached
internal agreement on reform of the Common Agricultural Policy and the creation
of a Common Fisheries Policy.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1455 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

France may cut Soviet gas order

BYLINE: BY TERRY DODSWORTH IN PARIS

SECTION: SECTION I; European News; Pg. 2

LENGTH: 355 words

HIGHLIGHT: TOUGHER STANCE OVER CLAMPDOWN CONSIDERED

FRENCH MINISTERS are considering a reduction in planned purchases of Soviet gas
to back up the Government's tough diplomatic line over the Polish military
takeover.

The argument in the French administration revives a debate that has been going
on during the past 18 months over the amount of gas the country should buy via
the new Russian pipeline to Western Europe.

France has reached an informal outline agreement for the delivery of 8bn cubic
metres of Soviet gas a year, amounting to about 33 per cent of the country's
projected gas needs in 1990. But opponents would like to see this cut by at
least half.

The Government's willingness to reconsider the gas contract marks a volte face
after the rejection of recent U.S. warnings against increasing France's
dependence on Soviet supplies.

Following talks with a Soviet delegation in November, French negotiators were
preparing to conclude the agreement and fix prices

Doubts about the contract have come mainly from the Foreign Ministry, where some
officials accept the U.S. argument that it could be economically and politically
dangerous to put the country into a position of over-reliance on Soviet gas.

According to Government plans for the increase in natural gas consumption, the
Soviet supplies would account for about 5 per cent of the country's total energy
use by 1990.

In addition to these fears, a cut in the proposed gas contract would give more
substance to the strong line taken by President Francois Mitterrand on Soviet
complicity in the Polish crisis.

President Mitterrand is likely to make the final decision. But it remains an
extremely difficult decision because of the country's heavy dependence on its
own exports to the Soviet Union.

It has recently signed three orders, worth a total of well over FFr 5.5bn
(£507m) for equipment for the gas pipeline, and these could be jeopardised by a
reduction of the gas order. France has refused to apply economic sanctions
against the Soviet Union similar to those brought in by the U.S., saying it
stands to lose more than the Americans in trimming its Soviet trade.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1456 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Moscow vents fury on Polish activists

BYLINE: By Our Moscow Correspondent

SECTION: SECTION I; European News; Pg. 2

LENGTH: 224 words

PRAVDA, the Soviet Communist Party newspaper yesterday issued one of its
fiercest attacks on Polish activists, accusing them of having sown "inhuman,
psychological and physical terror" in Poland before martial law was imposed.

Reporting from Warsaw, the newspaper said more and more documents were emerging
that showed "counterrevolutionary" leaders to be "unprincipled, blood-thirsty,
cruel people ready to sacrifice thousands of lives to fulfil their aims."

The unusually strong wording was published against a background of reports from
the Polish capital suggesting that some interned leaders belonging to the
Solidarity free union movement or dissident groups would be released in the near
future.

The tone of the Pravda article suggested that Moscow could see fresh trouble
ahead for the Polish authorities if many extremists were not imprisoned for long
spells.

The article suggested that Poland's long-term security picture, as Moscow sees
it, would figure in talks between the Kremlin and the Polish Foreign Minister,
Mr Jozef Czyrek, whose imminent arrival in the Soviet capital was announced on
Tuesday night.

The Soviet Press also gave wide prominence to the Kremlin's denunciation of the
decision by European Community foreign ministers not to undermine U.S. sanctions
against Poland and the Soviet Union.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Mr Jozef Czyrek

Copyright 1982 The Financial Times Limited

1457 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

How takeover took U.S. by surprise

BYLINE: Leslie Colitt

SECTION: SECTION I; European News; Pg. 2

LENGTH: 792 words

HIGHLIGHT: Washington had ruled out action by army, writes Leslie Colitt

THE MILITARY coup in Poland on December 13 took the U.S. Administration totally
by surprise.

Senior Western diplomats paint a dismal picture of petty personal rivalries,
ineptitude and chaos in America's handling of the Polish crisis which has come
to light in the three weeks since the military takeover in Warsaw.

They note that the vast technical resources of the Central Intelligence Agency
failed to provide a single clue that a military option was being prepared by
General Wojciech Jaruzelski.

"All the sophisticated listening devices which can allegedly pick up telephone
conversations in Warsaw came up with nothing," said one well-placed diplomat.
"Perhaps the generals discussed their coup in a cafe where they could not be
overheard," he offered.

Not only did America's vaunted "spy in the sky" satellites and its powerful
ground listening posts on Poland's periphery fail to pick up any sign of the
impending military move. America's diplomats too, suspected nothing.

The U.S. Embassy in Warsaw had been reporting to the State Department that the
winter in Poland would be a critical time but a military crackdown had been
largely ruled out.

Most of the Americans, like other foreign diplomats in Warsaw, did not believe
the Polish army leadership would be able to carry out such an enormous task
without tearing itself apart.

The American Ambassador to Poland, Mr Frank Meehan, a highly-regarded career
diplomat thought the situation in Poland to be so unexceptional that he left
Warsaw on home leave just before martial law was imposed. But not all the
members of his embassy had ruled out the Polish military option.

An astute young U.S. diplomat of Polish extraction was telling anyone visiting
the Embassy who would care to listen that Poland could not survive this winter
without radical changes. Either Gen Jaruzelski the Solidarity Union and the
Polish Catholic Church would get together to form a new "Government of national
understanding" or the General would be forced by Moscow to take matters into his
own hands. He noted that the Soviet Union would choose to intervene militarilly
in Poland only as a last resort, when the Polish army had exhausted its
possibilities.

It is unclear whether this accurate assessment ever reached the State department
in Washington. It was almost certainly weeded out in the bureaucratic machinery
before it could even reach the policymakers.

The diplomats explained that foreign policy options presented to President
Reagan were carefully filtered through his top aides from his California years
-- people like Mr Edwin Meese, the most influential White House adviser on
foreign policy.

Thus, responsibility for the conduct of American policy towards Poland appears
to have been left essentially in the hands of men whose political horizon barely
extended to Western Europe, not to speak of Poland.

In all fairness, even leading Solidarity officials had also refused to believe
the Polish army was capable of carrying out a coup. As late as last August, Dr
Bronislaw Geremek, one of Mr Lech Walesa's closest advisers, told the Financial
Times that he did not think the Polish army "has the men to carry out a coup
d'etat" in support of the Communist party. At that time the possibility of just
such a coup was the talk of Warsaw.

Did Washington expect the deep split in the Western Alliance when President
Reagan announced his economic sanctions against the Soviet and Polish
Governments? The diplomats say that well in advance of the army coup in Warsaw,
U.S. and European officials had discussed a catalogue of reactions to various
moves on Poland of which it was assumed the most likely would be a Soviet
invasion. No firm commitments were made by the Europeans. This was merely a
dry-run exercise, conducted by officials and not politicians. But the Europeans
left no doubt that they were not enthusiastic about imposing economic sanctions
of the kind being considered in Washington.

The U.S. had warned of an imminent Soviet invasion of Poland with such
monotonous regularity that when the Polish army and security forces struck on
December 13 it looked almost encouraging to some European governments. Here was
one line of repression the Americans had largely ruled out. The Europeans felt
it clearly did not warrant the more drastic retaliation proposed by Washington
if the Russians invaded Poland such as halting European participation in the
natural gas pipeline to be built from Siberia to Western Europe.

In the event the Europeans complained bitterly that they were barely consulted
by Washington before President Reagan announced his countermeasures 16 days
after the generals took over in Poland.

LANGUAGE: ENGLISH

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1458 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Brussels confirms UK 'recovery'

BYLINE: BY GILES MERRITT IN BRUSSELS

SECTION: SECTION I; European News; Pg. 2

LENGTH: 338 words

THE LATEST EEC league table to rank member states according to the ravages of
recession is headed by the Netherlands and Luxembourg.

Britain is third, according to provisional European Commission figures charting
the decline in incomes and consumption in the Community during 1981.

Other indicators produced by the Commission show that the UK's industrial output
position improved slightly towards the end of last year and did not show the
same overall deterioration as a number of other EEC states, most notably the
Netherlands. The pointers of a late 1981 survey by the Commission were that
Britain, together with France, was headed for a cyclical recovery this year.

The Commission's analysis of household incomes and private consumption in the
EEC last year showed, for the UK, a 3 per cent drop in the former and 0.6 per
cent decline in the latter. In the Netherlands, however, in sharp contrast to
the 6 per cent increase in household incomes in 1980, there was a decrease of
3.6 per cent last year.Private income was almost as hard-hit, with a 3.4 per
cent drop. Luxembourg saw household incomes reduced by 3.3 per cent, and only
France broke the trend of negative or stagnant incomes in the EEC with a 1.9 per
cent rise in both incomes and consumption.

In its current analysis of economic prospects in the Community, the Brussels
Commission notes that the UK's four percentage-point recovery in industrial
production last November suggests a further accumulation of evidence pointing to
cyclical recovery. The Commission survey added that there was a "modest
continuing recovery" in British industrialists' order book expectations, while
in France that improvement was even more clear-cut.

The most recent EEC industrial production statistics show that, on provisional
figures up to the end of last October, Community output had risen 0.5 per cent
from October 1980 levels to stand at 118.5 (1975=100). Britain, during that
period, pushed its industrial production index from 106.3 to 109.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 7, 1982, Thursday

Britain protests over jamming of BBC

SECTION: SECTION I; European News; Pg. 2

LENGTH: 88 words

Mr Viktor Popov, the Soviet ambassador to Britain was summoned yesterday to the
Foreign Office by Lord Trefgarne, a junior Minister, and told that the
Government "strongly deplores" the jamming of BBC Polish language broadcasts,
agencies report. Lord Trefgarne made it clear that Britain believes the Soviet
Union is responsible for the jamming.

The BBC announced on Tuesday that all its Polish transmissions were being
jammed. Engineers had traced the jamming to Smolensk and Kaliningrad in the
Soviet Union.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1460 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Belgian central bank cuts discount rate

BYLINE: BY OUR BRUSSELS STAFF

SECTION: SECTION I; European News; Pg. 2

LENGTH: 280 words

BELGIUM'S central bank signalled yesterday that speculative pressures on the
Belgian franc have now eased by reducing the discount rate a full point to 14
per cent.

The Banque Nationale de Belgique's move amounts, however, to only a cautious cut
in the country's record-level interest rates. The discount rate still remains a
point higher than before last December 11, when it was abruptly raised two
points from 13 per cent in order to stem a run against the franc caused by
rumours of imminent devaluation.

The readjustment of Belgium's emergency interest rates hike of last month
follows a claiming of the franc's volatile behaviour inside the European
Monetary System (EMS) in recent week, and that in turn reflects the return to
political stability inside Belgium produced by the formation of the new
Centre-Right coalition government led by Mr Wilfried Martens.

Mr Martens' success in negotiating a new government, ending more than two months
of political vacuum, at first boosted the franc strongly.Political confidence,
together with a central bank move to discourage foreign companies from
speculating against the currency, briefly moved the Belgian franc in
mid-December from being close to its official divergence limit in the EMS to the
top of the system's grid.

That surge, which saw the franc gain 53 per cent in value against the European
Currency Unit (Ecu) indicator of the EMS, has since settled down. Last week,
the currency lost ground again to resume its place as the weakest in the EMS,
but it is clear that the national bank is confident further sustained
speculation will not be triggered by its decision to drop interest rates.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Mr Wilfried Martens

Copyright 1982 The Financial Times Limited

1461 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

French cabinet backs Corsican autonomy move

BYLINE: By David White in Paris

SECTION: SECTION I; European News; Pg. 2

LENGTH: 200 words

PLANS to set up a special administrative structure in the island of Corsica - an
unprecedented move in French Government policy towards the regions - were
approved by the Cabinet yesterday

Providing for the election of a new Corsican assembly within the next six
months, this initial piece of legislation is being pushed through by M Gaston
Defferre, the Interior Minister, in a bid to forestall a resurgence of
separatist violence on the island.

However, solutions to the key questions of how much power will be devolved to
the assembly and what rescources it will have at its disposal will have to wait
until later in the year, when the next stages of the Mitterrand Administration's
overall decentralisation programme come up for debate.

Last-minute objections by the Council of State, the judicial advisory body,
prevented M Defferre from tabling the whole of his "special statute" plan for
Corsica in one go last month.

The 61-member Corsican assembly is due to be elected under a proportional
representation system, for a six-year period. It will appoint a president for
three years. Paris will, meanwhile, keep its two prefects - renamed
commissioners - on the island.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1462 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Dutch sickness benefit reduced

BYLINE: BY CHARLES BATCHELOR IN AMSTERDAM

SECTION: SECTION I; European News; Pg. 2

LENGTH: 328 words

THE DUTCH Government has announced plans to cut the level of sickness benefits
in the most farreaching effort to prune the Netherlands' generous social welfare
programme yet attempted.

The decision to cut benefits by Fl 1.4bn ($360m) and to shift a further Fl 1.2bn
of payments from the public to the private sector has provoked a storm of
protest from both unions and employers.

The Government wants to cut the level of sickness benefit from 100 per cent of
an employee's net wage to 80 per cent. It hopes to introduce this change on
April 1 but has first to get its proposal through parliament.

The Social Affairs ministry, responsible for the proposal, argues that this
would bring sickness benefits into line with unemployment pay - also 80 per cent
of a person's net earnings - to protect the lowest paid.

Many collective wage agreements already guarantee employees their full salary
while they are sick, but the Government now plans to forbid such clauses in any
agreements. It will also make it illegal for employers to re-insure themselves
with the industrial sickness funds so as to continue to make sickness payments
of more than 80 per cent. Employers would, however, still be able to take out
private insurance.

These proposals, if accepted, will go further than any previous efforts to
reduce the Netherlands' sizeable welfare bill. In previous rounds of spending
cuts, Fl 1bn was saved on child benefits, and another Fl 1bn was lopped off
other forms of social security payments.

These latest measures have been proposed by Mr Joop den Uyl, the Social Affairs
Minister and Labour Party Leader, who was largely responsible for the expansion
of the Dutch social security system during the mid-1970s.

The unions criticised the proposed cuts as disriminating against the sick and as
threatening the status of collective wage agreements. The employers complained
that an extra burden would be put on the private sector.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1463 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Development aid controls tightened

BYLINE: BY OUR AMSTERDAM CORRESPONDENT

SECTION: SECTION I; European News; Pg. 2

LENGTH: 301 words

THE NETHERLANDS, the world's most generous development aid donor, is to tighten
up financial controls after the discovery that some projects have been badly
managed.

Problems on two small projects in Peru costing a total of Fl 6.4m ($2.6m) have
led to a more thorough auditing of the entire Fl 3.61bn aid programme, the
Development Aid Ministry said.

The Dutch Government is already carrying out a more wide-ranging review of its
aid programme following a report released just over a year ago showing that many
projects were poorly planned and inadequately supervised. The results of this
review, which is expected to cover several hundred projects, should be released
shortly.

To tighten up financial controls, the Development Ministry plans closer links
between project leaders and the local Dutch embassy. Also, accountants will be
attached to the larger projects and project leaders will be required to file
three-monthly reports to The Hague detailing how programmes are progressing.

This problem has arisen because accounting controls in the Netherlands have
become more sophisticated, but this sophistication has not been matched on the
projects themselves. Project leaders are also usually technical experts without
any administrative experience, the Development Aid Ministry said.

It will continue to be a problem to supervise the more isolated projects,
however. The two programmes in Peru - to train farmers and develop agriculture
- are in an isolated part of the Andes.

The Netherlands was the world's most generous aid donor in 1980, the latest year
for which figures are available - contributing 0.99 per cent of gross national
product. Sweden and Norway, top and joint second in the aid table in 1979, fell
to third and second place respectively last year.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1464 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Liberal Amsterdam struggles to stem rising tide of social problems

BYLINE: CHARLES BATCHELOR IN AMSTERDAM

SECTION: SECTION I; European News; Pg. 3

LENGTH: 918 words

AMSTERDAM, like the hippies it so enthusiastically welcomed in the 1960s, is
showing signs of age. Long a magnet for the outcast, the liberal Dutch capital
is fast reaching the limits of its ability to absorb newcomers.

The city's desperate shortage of housing has produced a vocal, and frequently
violent, squatters' movement. The drugs problem is out of hand and crime --
much of it drug-related -- is turning some parts of the city into no-go areas
for tourists and local people.

A few years ago, Amsterdammers relate with sorrow, even the red-light district
was a place where ordinary families lived and felt quite safe. Now drug
syndicates have taken over many of the cafes on the famous Zeedijk and the city
authorities have drafted in extra police.

Ordinary families have fled the city for the green and pleasant satellite town
up to 50 km away. As families have moved out, their places have been taken by
young people, many of them students, keen to enjoy the bright lights.

The old people have also stayed, placing heavy demands on the city's social
services. Amsterdam has also become home to an increasing number of
gastarbeiders from the Mediterranean countries and to many of the Surinamese who
came to the Netherlands when their country became independent in 1975. One in
seven of Amsterdam's 710,000 inhabitants was born outside the Netherlands.

"There can be few cities where the composition of the population has changed so
radically," says Mr Wim Polak, burgomaster for the past four years. "Amsterdam
may be the capital but it is not a large city in international terms. Its
ability to absorb newcomers is great but we are facing problems with the second
generation of immigrants. A half to three-quarters of the pupils in some
schools come from minority groups."

Amsterdam has the reputation of being a free republic within the kingdom of the
Netherlands, where anything goes. This image owes much to the fact that, in
spite of Amsterdam's being the capital, the serious business of government takes
place in The Hague, while Rotterdam is the trading and industrial motor of the
economy. "Amsterdam," the saying goes, "is full of people enjoying themselves.
The Hague is full of people thinking up ways of stopping them, while Rotterdam
is too busy working to notice."

This picture is not entirely true to life. Amsterdam is the financial centre of
the Netherlands and the home of some 40 foreign and all the large domestic
banks. It is also a major congress centre with an important, if decling,
harbour and the country's international airport of Schiphol on its boundaries.

But it is the city's theatres, concert hall, opera, cafes and clubs which
determine its image. Amsterdam has two universities, The Hague none. Its rings
of canals lined with handsome merchants' houses make it the fourth most popular
tourist destination in Europe after London, Paris and Rome.

Tourism could be one of the first business sectors to suffer from the problems
Amsterdam now faces. The Japanese Foreign Ministry earlier this year warned
businessmen of the dangers of Amsterdam. "Crime is a big problem," says Mr
Polak, "the addict needs money and turns to mugging and shoplifting. No one has
a solution to the drugs problem, though we are trying to disperse the main
concentrations of the trade."

The squatters' movement has also become increasingly violent. Clashes with the
police occur almost monthly. These are frequently followed by protest marches
through the city centre.

The morale of the city's overworked police force has suffered. Senior policemen
say it is difficult to find new recruits and even more difficult to keep them
for more than a year or so. Amsterdam policemen protested last month against
the difficulties under which they work, and demanded a large pay rise.

They complain that they must bear the burden of the failure of the politicians
to solve complex social problems. Amsterdam's Left-wing council is popularly
believed to have been overwhelmed by the difficulties it faces. The success of
Rotterdam's, also Left-wing council provides a sharp contrast to the hesitant
approach in the capital.

Internal divisions within the Left-wing parties in Amsterdam, particularly in
the dominant Labour Party, paralyse decision-making, according to one senior
Rotterdam official. Mr Polak's however, denies this. "The quality of this
city's managers is good," he says. But even he admits that the council has more
than its fair share of what he calls "the fifth estate" -- academics and social
workers -- and not enough practical businessmen or skilled working people.

Relations have long been strained between the city council and the business
community. Businessmen claim that the policy of supporting public transport at
the expense of the private car drives away customers and makes staff hard to
come by. Tram-only lanes have reduced the road space available to the motorist,
while the city's refusal to allow building of car parks makes parking a
nightmare.

The inaccessibility of the city centre and the depressed state of the Dutch
economy have led to a loss of 5,000 jobs a year over the past decade. Around 10
per cent of the population is unemployed -- a figure as high as in the
traditional unemployment blackspots in the provinces. The decline of the port
and of the shipbuilding industry, and the closure last month of Ford's truck
assembly plant, have lengthened the dole queues.

LANGUAGE: ENGLISH

GRAPHIC: Picture 1, Burgomaster Polak: population changes; Pictures 2 and 3, Two
aspects of Amsterdam: tourist boats on tranquil canals and water cannon on
violent streets as police clash with housing protesters, Terry Kirk

Copyright 1982 The Financial Times Limited

1465 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Banking gnomes fight against intrusion into their fiscal grotto

BYLINE: BY A. H. HERMANN, LEGAL CORRESPONDENT

SECTION: SECTION I; European News; Swiss Banking Commission; Pg. 3

LENGTH: 1069 words

SPENDING THE New Year in Switzerland, one could not avoid being asked whether,
according to the Financial Times's crystal ball, the Russians would pay the
Polish debts - and asking in return what would the Swiss banks to if they did
not. Not that these questions would generate any great flow of information
either way. The Swiss banks do not say how much they have lent to the Poles.

But some, I was told, have already written off the Polish debts without showing
this in their balance sheets. It they indeed did that, they forestalled the
Swiss Banking Commission's latest move towards a greater transparency of banking
accounts.

How can one write-off a bad debt of, say SwFr 1bn without unduly alarming
shareholders and depositors? The answer is by secret deployment of secret
reserves. The secret reserves are created, of course, by accounting assets at
their historical value. For example, gold bought in the good old days at $100
per ounce is still accounted for at that price.

When the need comes - that is when the bank or one of its debtors blunders - the
gold is sold, or perhaps only revalued by a bed-and-breakfast operation, at the
present price. The resulting profit is used to make up the loss, and neither
the profit nor the loss appears in the published accounts. There is a theory
abroad in Zurich that banks are in the business of making both profits and
losses, but that the sleep of the simple-minded depositors should not be
disturbed by letting them know about the second.

This happy state of affairs received the seal of legality by the notorious
Circular Number 4 issued by the Swiss Banking Commission on December 4, 1975.
The Swiss prohibit hidden offsets of expenditure by revenue, but the circular
stated: "An exception from the prohibition of offsets can be allowed only for
the purpose of covering losses and creating reserves for risks of all sorts . .
. it is our view that banks, in the same way as other enterprises, way use
secret reserves as well as current revenue to offset losses."

The circulars of the Swiss Banking Commission are not law but come very close to
it. The Commission expects any bank that would not accept its ruling to notify
it. In such a case, the Commission would address to the recalcitrant bank a
decision against which the bank could appeal to the Federal Court. It is not
known that any bank has protested against circular No. 4.

Indeed, the Swiss banks were somewhat alarmed (as far as the Swiss are capable
of such a state of mind) by the announcement that reached them before the year's
end that Circular No. 4 had been withdrawn. It will be replaced only after a
further exchange of views between the Banking Commission and interested parties
has taken place, and in the meantime - that is when drawing up their accounts
for 1981 -- the banks have to rely on the law itself and its interpretation by
the courts, and that might have unpleasant consequences if one takes literally
the requirement of the law that bank accounts should give a "true and clear"
picture of the state of its affairs.

The law requires that the balance sheet and the profit and loss account should
assure that the interested parties receive a true picture of the state of the
company's affairs. The Federal Court said recently that the "interested
parties" included not only shareholders, creditors and debtors, but also the
public at large.It also ruled, in another case, that subsidies, which a bank
receives from a parent company to make good losses, have to be shown.

The court indicated that the requirement of truth and clarity in accounts had
greater weight than the banks' desire to cover up losses. The question now is
whether this principle can be applied also for the deployment of secret
reserves. Some Swiss authors are quite positive that a secret deployment of
secret reserves is perfectly compatible with the law if used to make up unique
losses or a temporary reduction in profits.

To acquaint banks with its thinking, the Banking Commission has shown them a
draft of a circular which should, after further consultations, replace circular
No. 4. This makes it clear that the Commission is not against secret reserves.
It merely intends to restrict their deployment to hide losses.

In the future, when secret reserves are mobilised for whatever purpose, the
respective amounts should be shown under the heading of "Diverse Income" in the
final accounts. This would mean that to balance the accounts the bank would
have to show also the losses. Should the present draft of the new circular be
confirmed and unchallenged in courts, or challenged and upheld, the unthinkable
may yet happen. The Swiss banks may actually have to reveal their losses,
including those in Poland.

In addition to secret reserves, the fiduciary operations which play an important
role in the business of Swiss banks of international standing also contribute an
element of uncertainty. In theory, the client entrusts his assets for fiduciary
management of a portfolio at his own risk. In practice, the banks can, and do
from time to time, get involved in claims for mismanagement or over-stepping of
the client's instructions and limits.

A bank can also get involved in litigation on behalf of a client whose portfolio
it manages, particularly when the basis of the agreement was that the name of
the beneficiary would not be disclosed. For this reason Dr Fritz Leutwiler,
President of the Swiss National Bank, favours the listing of the volume of
fiduciary deposits in the annual reports, as is already done by some banks. But
many banks keep this figure secret.

As their fiduciary business equals in the case of some banks several times their
balance sheet total, it is questionable whether their accounts and reports come
anywhere near to a true and fair picture of their business involvement.

The pressure for a greater transparency of Swiss bank accounts is likely to
increase still further if the Commission of the European Communities draft
directive for the consolidation of report on EEC-wide operations of banks. This
directive should give the "home" state of a bank the possibility to supervise
its activities throughout the Ten. Where banks have business outside of the
EEC, the draft directive expects member states to enter into bilateral
agreements with non-EEC states on a reciprocal basis.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1466 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Europe tops U.S. in Krugerrand sales league

BYLINE: By Bernard Simon in Johannesburg

SECTION: SECTION I; Overseas News; Pg. 4

LENGTH: 168 words

EUROPE REPLACED the U.S. in 1981 as the largest market for Krugerrand gold
coins, according to Mr Don Mackay-Coghill, chief executive of the International
Gold Corporation, marketing arm of the South African Chamber of Mines.

Intergold disclosed that Krugerrand sales totalled 3.559m ounces last year, 13.1
per cent higher than in 1980, but well down on the record 6.012m ounces sold in
1978. More than 34m ounces of Krugerrands, which are minted in four
denominations, have been sold since the coin was launched in 1970.

Mr Mackay-Coghill said U.S. customers accounted for less than 40 per cent of
total sales last year, after buying more than half of all Krugerrands sold in
1980. Sales to Europe rose to about 50 per cent of the total in 1981.

U.S. demand was dented by high interest rates, lower inflation and the weak gold
price, while the Polish crisis stimulated sales in Europe. "Whenever there is
concern about the Russian threat, people buy coins," Mr Mackay-Coghill said.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1467 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Foreign interest sharpens in China's offshore oil

BYLINE: BY TONY WALKER IN PEKING

SECTION: SECTION I; Overseas News; Pg. 4

LENGTH: 865 words

THE RECENT publication of a corporate tax law by the Chinese Government has
caused a quickening of interest among foreign companies in China's offshore oil
prospects.

"I think the publication of the law is a step forward," said a U.S. oil company
representative in Peking. But he added that it will "take a number of further
steps" before bids are called for exploration rights.

The draft law includes a provision to allow foreign companies to offset tax paid
in China against their domestic tax liabilities and so avoid double taxation.

Oil company representatives here expect China to adopt a "two-stage" process in
deciding how to go about allocating exploration leases in the Yellow and South
China seas. The first stage would be for Peking to ask foreign companies to
register their interest in bidding.

It would then be up to the Chinese to call actual bids, which is likely to
happen sometime soon. The representative of a big European oil conglomerate in
China pointed out that further regulations needed to be published such as those
governing the payment of royalties before bids can be called. "We can't make
bids until we get the whole picture," he said.

Oil company representatives believe it will not be until at least late this year
and most probably early in 1983 before exploration leases are allocated. This
would allow an expected three to six months for the Chinese to evaluate bids and
then additional time for companies to negotiate draft contracts.

Unlike other businessmen, such as bankers, oil company executives are, generally
speaking, happy with the draft corporate tax regulations because of their
expected compatibility with U.S. law. One executive said it was apparent the
Chinese had U.S. oil companies with their responsibilities to the internal
revenue service in mind.

On the face of it, according to a U.S. lawyer based in Peking, the draft would
appear to be compatible with U.S. law, which sets a corporate tax rate of around
46 per cent.

China reportedly considered a special oil tax, but discarded the idea when it
was pointed out that such a tax would create difficulties for U.S. companies
which have to satisfy strict compatability requirements under U.S. law.

More than 40 companies are lining up to bid for leases in China's offshore
areas, which have been the subject of extensive seismological surveys. The
Chinese are now assessing data gathered at great expense by foreign oil
companies interested in bidding for exploration rights.

It is on the basis of this data and its own surveys that China's Petroleum
Ministry is deciding how to divide up promising areas for competitive bidding.

The recent oil symposium in Canton was an indication of quickening interest in
China's offshore oil prospects. It attracted more than 400 delegates, many of
them oil company representatives.

The symposium, organised by Wah-Chang International Marine of Singapore and the
Guangdong Shipbuilding Corporation had the technical aspects of the oil industry
such as rig construction and servicing as its main focus. It also discussed
financing, geological prospects in the Pearl River basin, and legal and
insurance issues.

Speakers at the conference, notably Mr Michael Sandberg, chairman of the Hong
Kong and Shanghai Banking Corporation, took a generally optimistic view of
China's oil prospects and the contribution the Chinese could make to relieving
energy shortages in the Asian region.

Mr Sandberg told the conference that Asia was now the home of some of the
world's fastest growing economies, where demand for energy was growing at a
"voracious rate."

"China, therefore, has a major role to play over the next two decades by not
only increasing production to meet its domestic demands, but also by expanding
exports to alleviate a potentially chronic energy shortage," he said.

China's present oil output amounts to about 2m barrels a day, or 100m tons a
year, but the Cninese are having difficulty maintaining production at such
levels. This is because of faltering output from the Daqing Field, easily
China's largest which accounts for about 50 per cent of the country's
production.

Mr Zhao Ziyang, China's Prime Minister, admitted at the National People's
Congress last month that there was a tremendous waste of oil in China and much
greater efforts at conservation would be needed.

"At present, 40m tons of petroleum are burnt as fuel each year, a large
proportion of which should not have been so used," he said. "The waste is
enormous. The State Council (China's cabinet) has decided to take the necessary
measures in the next 10 years to replace oil consumption by coal consumption,
saving petroleum for processing at home or for export, and to use the revenues
thus derived for building our energy industry and transport."

On the question of outside involvement in the development of China's oil
industry, Mr Zhao said: "In accordance with the principle of mutual benefit, the
Government has decided to invite tenders from foreign firms in the near future
and, with their co-operation, to step up exploration and open and build new
oilfields as soon as possible."

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1468 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Border crossing change

SECTION: SECTION I; Overseas News; Pg. 4

LENGTH: 167 words

CHINA has told the British authorities in Hong Kong that it is going to simplify
the border crossing procedures between the two territories at Lo Wu, the main
Hong Kong-China border point, Kevin Rafferty writes. Though the Chinese have
not stated their reasons for the move, it is intended to strengthen China's free
trade zone at Shenzhen, immediately beyond the Lo Wu checkpoint.

The plans have caused something of a stir in China, with Chinese rushing to try
to get on the right side of capitalism. They are keen to establish their
residence or workplace on the free trade side of the line.

When the boundary is decided, China will probably place a high fence round the
free trade area. The cost of the fence could be £60m.

For foreigners, procedures for getting into China proper would remain much the
same, but access to Shenzhen would be simpler, with either multientry visas
being awarded or perhaps no visas at all being necessary. Customs formalities
would be reduced.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1469 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Israeli civil servants strike

BYLINE: By David Lennon in Tel Aviv

SECTION: SECTION I; Overseas News; Pg. 4

LENGTH: 195 words

ISRAEL'S civil servants held on one-day strike yesterday which paralysed
government services. They are demanding a pay rise to compensate for Israel's
inflation - officially estimated at over 100 per cent.

Government offices were closed, hospitals operated on emergency schedules, radio
and TV broadcasts were shut down apart from news reports and trains were halted.

The civil servants' union is demanding a Shl 420 ($26.41) monthly increase for
employees earning less than Shl 5,000 ($315) a month. The Civil Service
commission is offering Shl 250.

The strike provided a fitting background yesterday for the first meeting between
Mr Yoram Aridor, the Finance Minister and Mr Yerucham Meshel, secretary general
of the Histradrut trade union federation. They were expected to discuss
unemployment and inflation.

Since taking over the treasury almost a year ago, Mr Aridor has indicated that
he wants to weaken the power of the Histadrut and has refrained from holding any
meetings with the labour federation leader.

The country's 60,000 civil servants warned they will take more extreme measures
if their demands for sizeable wage are not met.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1470 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

British concern at Ghana coup

BYLINE: By Quentin Peel, Africa Editor

SECTION: SECTION I; Overseas News; Pg. 4

LENGTH: 133 words

THE BRITISH Government yesterday expressed its concern at the developments in
Ghana following the military coup, as its leader, Flt Lt Jerry Rawlings,
announced that people's tribunals were to be set up to try "those who have
committed crimes against the people."

The Foreign Office said that the "composition and intention" of the ruling
Provisional National Defence Council remained unclear. "It is our hope that, as
before, there will be a speedy return to a democratically elected government,"
the statement said.

The latest broadcast by Radio Accra quoted Flt Lt Rawlings as saying that the
people's tribunals would be held in public, but would "not be fettered . . . by
the technical rules which in the past perverted the course of justice and
enabled criminals to go free."

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1471 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Khartoum demonstration march ends in violence

BYLINE: BY RICK WELLS IN KHARTOUM

SECTION: SECTION I; Overseas News; Pg. 4

LENGTH: 168 words

POLICE fired shots in the air and tear gas at 5,000 students marching in
Khartoum yesterday in protest against the regime of President Jaafar Nimeiri.
One student was reported to have been wounded.

The students hurled bricks and stones at the Government party's headquarters and
at the American cultural centre before reaching the Cairo branch of the
university on the other side of Khartoum. In contrast with Tuesday's march by
students of the Cairo branch, onlookers supported the students with chants
calling for a new revolution.

Shops were closed and armed soldiers manned petrol stations. The disturbances
are seen as a reaction to the stringent economic measures brought in by
President Nimeiri under the conditions imposed by the International Monetary
Fund.

The demonstrations follow the arrest on Monday of 21 prominent southern Sudanese

Our Cairo Correspondent adds: The Egyptian Foreign Minister, Mr Kamal Hasan Ali
has made a surprise trip to the Sudan, it was announced.

LANGUAGE: ENGLISH

GRAPHIC: Picture, President Nimeiri

Copyright 1982 The Financial Times Limited

1472 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Libya cuts development budget

BYLINE: By Patrick Cockburn

SECTION: SECTION I; Overseas News; Pg. 4

LENGTH: 74 words

LIBYA'S development budget will fall marginally in 1982 to LD 2.4bn ($8bn) from
LD 2.7bn last year, the Planning Secretariat has said in Tripoli. The new figure
was agreed after detailed studies on oil revenues.

The sectors receiving the largest sums are agriculture (LD 347m) and heavy
industry (LD 493m). Libya's oil revenues are now increasing as crude exports
increase from a low of 600,000 barrels a day (b/d) last October.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1473 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Sri Lankan business leader enters politics

BYLINE: BY KEVIN RAFFERTY IN SINGAPORE

SECTION: SECTION I; Overseas News; Pg. 4

LENGTH: 148 words

MR UPALI WIJEWARDENE, head of one of the biggest private sector business groups
in Sri Lanka, has resigned from a key administrative post in order to enter
politics. He has declared his ambitions to be Finance Minister and attacked the
Prime Minister, Mr Ranasinghe Premadasa.

Until this week Mr Wijewardene was Director-General of the Greater Colombo
Economic Commission, responsible for attracting foreign investment to Sri
Lanka's free trade zones and for trying to promote free enterprise in the
country. His Upali Group has wide interests in cocoa, rubber and palm oil as
well as industry.

Last year Mr Wijewardene launched an English language newspaper and allowed it
to be used to mount attacks on the Prime Minister, Finance Minister and other
Ministers.

For all his criticism however, Mr Wijewardene supports President Junius
Jaywardene and his programme.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1474 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Japan to hold Korea aid talks

BYLINE: By Our Far East Editor in Tokyo

SECTION: SECTION I; Overseas News; Pg. 4

LENGTH: 67 words

JAPAN and South Korea are expected to hold working-level talks on aid "in the
near future," the Japanese Foreign Ministry said last night. Japan regards the
talks as primarily an opportunity to discuss the amounts of aid to be given in
the current (1981) fiscal year which ends on March 31. Korea, however,
apparently hopes to press its demand for a five-year-old commitment by Japan of
$6bn.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1475 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

N. America 'biggest market' for Rolls cars

BYLINE: By Kenneth Gooding in London

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 364 words

NORTH AMERICA will probably become the biggest single market for Rolls-Royce
cars this year, Mr George Fenn, chief executive of Rolls-Royce Motors, the
Vickers subsidiary, predicted yesterday.

"All that stands between us and more sales in North American is more dealers,"
he said. Currently, Rolls has 70 dealers in North America, about the same as in
the UK. The company is actively recruiting and wants 10 more in North America.

Last year Rolls sold and produced 3,175 cars in all and 1,197 went to the U.S.
and Canada.

Mr Fenn forecast that output in 1982 will rise by between 5 and 7 per cent to
around 3,400. Nearly all the extra cars would be exported, mainly to North
America, he added.

However, in March last year, Mr Fenn predicted that Rolls would produce 3,500
cars in 1981 (up from 3,163 in 1980) so the company missed its target

Rolls's turnover moved up from £110m in 1980 to £130m ($248m) last year and
profits were "reasonably satisfactory," according to Mr Fenn. Details of the
company's profit performance will be released with the figures from the parent,
Vickers.

Exports of cars, associated equipment and parts last year brought exports to a
record £77m, against £64m in 1980. Mr Fenn suggested exports could rise to £95m
this year.

Sales of cars in the UK were unlikely this year to rise above the 1,220 for
1981. Last year's performance was "very satisfactory in the face of a decline
in the level of new car sales generally."

Nevertheless, it represented a fall of more than 7 per cent in UK sales against
an overall market decline of around 2.5 per cent.

Although there was only a small increase in production in 1981, this was a year
in which the company was switching to the production of the new Silver Spirit,
Silver Spur and Bentley Mulsanne models. The new models were ot launched in
overseas markets until well into 1981 and sales did not begin in the U.S. until
April.

Mr Fenn claimed that in the UK the depreciation on a Rolls-Royce car over a
four-year period was still substantially less than that of its main rivasls - 10
per cent against 20 per cent for a mercedes and 38 per cent for a jaguar.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1476 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Boeing ready to roll out narrow-bodied 757

BYLINE: BY MICHAEL DONNE, AEROSPACE CORRESPONDENT

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 467 words

BOEING, the world's biggest jet airliner builder, is to roll out its latest
aircraft, the narrow-bodied, twin-engined 757, next Wednesday at its factory
near Seattle.

It will be the second jet rolled out by Boeing in five months. The other was
the semi-wide-bodied 767, which emerged last August and is well into its flight
test programme.

The 757 is significant for Rolls-Royce, whose RB-211 Dash 535 engine powers the
aircraft, and for British Airways, which has ordered 19 aircraft with another 18
on option, in an order worth over £400m including spares.

Total orders for the 757 to date amount to 136 aircraft, from seven airlines,
with another 61 aircraft on option, worth in all about $7bn at an average price
of about $34m per aircraft.

The first flight of the 757 will be made next month, and after a nine-month test
flight programme, the first aircraft will be delivered to Eastern Airlines of
the U.S. in December. Eastern has ordered 27, with another 24 on option.

The first deliveries will be made to British Airways in early 1983, and the
aircraft will be put on to its short-haul routes to the Continent, and on the UK
domestic Shuttle routes.

The twin-engine Boeing 757 is a most significant aircraft for the airline
industry. Seating about 180 passengers, and capable of flying distances
averaging about 1,500 miles -- it is described as a short- to medium-haul
aircraft -- it is intended as a replacement for many ageing aircraft types,
ranging from One-Elevens, Tridents, DE-9s, and Boeing 727s.

The 757 could make inroads into the potential market for the projected smaller
150-seater type airliners.

Operators interested in 150-seaters could fly 757s with fewer seats, especially
since Boeing claims the fuel economy of the aircraft is up to 35 per cent better
than any of the aircraft it is likely to replace.

In addition to British Airways and Eastern Airlines, two other airlines have
ordered the 757 with Rolls-Royce engines -- Monarch of the UK, which has ordered
three with another on option, and Air Florida, three with three on option.

But Rolls-Royce has considerable competition on engines. Pratt and Whitney,
with its PW-2037, has won major orders from American Airlines (15 firm and 15
options), and Delta (60 firm with an undisclosed number of options). Among
potential customers for the aircraft are Pan American, Northwest and other
operators.

Boeing is setting its sights on a break-even sales target of at least 300
aircraft over the next five years, but it believes the ultimate market could
amount to over 1,000 aircraft through the 1980s Once the recession ends, it
believes there will be a flood of orders.

Boeing needs this kind of market to cover its development costs, estimated at
over $1.5bn for the 757.

LANGUAGE: ENGLISH

GRAPHIC: Picture, The final touches are put to a 757 jet in Seattle.

Copyright 1982 The Financial Times Limited

1477 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

'Frustration' in U.S. over Japan

BYLINE: By Charles Smith in Tokyo

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 130 words

JAPAN'S trade problems with the West will not be solved until Western
businessmen believe that they enjoy the same access to Japanese markets as
Japanese exporters do in their own countries, Mr Mike Mansfield, U.S. Ambassador
to Japan, said yesterday.

He said that he thought there was a "fundamental frustration" in the U.S. over
the difficulties of penetrating the Japanese market.

The existence of such feelings posed a "grave risk" to Japan and meant that
action to open the market was becoming urgent. Failing such action, the
ambassador suggested that the U.S. Congress might take punitive measures.

These could include the imposition of a special tax on Japanese imports or the
introduction of minimum U.S. content rules for all imported foreign cars.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1478 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

UK hopes India will be first overseas buyer for System X

BYLINE: BY GUY DE JONQUIERES

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 416 words

MR KENNETH BAKER, British Minister for Information Technology at the Industry
Department, will seek next week to persuade the Indian Government to become the
first overseas customer for System X, Britain's advanced electronic telephone
exchange.

System X is being entered in the bidding for the first phase of a project to
modernise and expand India's ageing public telecommunications network. The
project is expected to require a total investment of more than £100m over
several years.

The Indian Government has called for tenders by March. Keen competition is
expected from several large telecommunications manufacturers, including L. M.
Ericsson of Sweden, Japan's Nippon Electric Corporation, the Belgian subsidiary
of International Telephone and Telegraph of the U.S. and at least one French
company.

Mr Baker will visit India with Sir George Jefferson, chairman of British
Telecom. Sir George is expected to bolster the sales effort by offering Indian
officials extensive technical co-operation and support if they decide to buy
System X.

India is seeking initially the supply of 200,000 local exchange lines. It wants
the most modern type of digital exchanges, which use computers to switch and
control voice and date communications.

The Indians have also asked bidders to make proposals for the construction of a
large local plant which could manufacture 500,000 exchange lines a year and for
assistance in exporting part of its production to third countries.

The financing of the project is likely to play an important role in the eventual
contract decision. India hopes to borrow a sizeable proportion of the cost from
the World Bank, but it is also expected to bargain hard on terms with bidders
before it chooses a supplier in 1983.

The British Government has yet to decide how much backing it will give System X.
The Industry Department recently commissioned an independent review of System
X's export prospects which is expected to serve as a basis for decisions on
financing.

British Telecom has invested more than £100m so far in the development of System
X. Export marketing is being handled by British Telecommunications Systems, a
consortium formed by British Telecom, the General Electric Company (GEC),
Plessey and Standard Telephones and Cables.

The Indian project will be System X's first attempt at a major overseas order.
GEC, which has extensive business links with the sub-continent, has been
appointed prime contractor.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1479 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Iran proposes Bandar Khomeini talks

BYLINE: By Our Far East Editor in Tokyo

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 161 words

IRAN HAS failed to produce a clear response to Japanese demands that it should
shoulder all future costs involved in the completion of the Bandar Khomeini
project in southern Iran, the Mitsui group said yesterday.

Instead it has proposed consultations on a formula for restarting work on the
project within the terms of the existing contract, under which, costs are
supposed to be shared equally by the Japanese and Iranian partners.

The proposal was contained in a letter to the president of Iran Chemical
Development Corporation from Mr Mostafa Taheri, chairman of the Iran National
Petrochemical Company.

ICDC and NPC are the two main shareholders in the Iran - Japan Petrochemical
Company (IJPC) which is in charge of the project.

Mitsui -- the biggest ICDC shareholder -- said that the Iranian letter was
unsatisfactory. If Iran failed to give a "clear reply" to Japan on revision of
the contract, anything might happen, the company said.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1480 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Jet leasing 'low priority' in Tokyo scheme

BYLINE: BY RICHARD C. HANSON IN TOKYO

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 399 words

AIRCRAFT LEASING to third parties will be a "very low priority" in the $500m
(£263m) import finance scheme being formulated by the Japanese Government,
according to the Ministry of International Trade and Industry (Miti).

The programme is due to begin on January 15 as part of a package of measures
approved by the Cabinet in December aimed primarily at reducing Japan's trade
surplus with the U.S. and Europe.

Final details still have to be worked out, but Miti says the priority in the
programme, which involves dollar lending from the official reserves by the
Japanese Export and Import Bank, will be financing imports of certain
commodities and manufactured goods for use in Japan.

Buying of rare metals, nonferrous metals, electronic medical equipment and
perhaps leasing items such as helicopters and light aircraft for Japanese
companies are included in the tentative list of goods which will qualify for
official financing aid.

The programme could be extended also to include dollar financing by the Exim
Bank of aircraft purchases by a domestic airliner.

All Nippon Airways, for example, may be able to take advantage of Japanese Exim
Bank dollar financing if and when it decides to acquire new Boeing 767s, for
which U.S. Eximbank export credits might not be available.

A Miti official suggests that little of the modest $500m sum proposed for the
programme may be left over.

In any case, a number of discouraging hurdles will have to be overcome before a
programme resembling the 1978 emergency aircraft leasing scheme can be made to
work.

The first problem is an argument between the Finance Ministry and Miti over
whether leasing aircraft to others should qualify as an import to Japan.

The Finance Ministry changed its mind in 1978, and ruled that financing the
leasing of aircraft (under the non-binding recommendations of the IMF) should
not be counted as a merchandise trade item as an import to Japan and subsequent
re-export to the user, but rather as a capital movement.

Miti argues for a loophole in the rules which would allow the leasing company in
Japan to claim temporary ownership -- say for a week -- to qualify in the trade
statistics as an import.

The most important point is that any such aircraft leasing represents a "new"
acquisition, one which would not be made but for the availability of special
Japanese financing.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1481 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Berlin Consult wins contract worth £21m

BYLINE: BY LESLIE COLITT IN BERLIN

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 126 words

BERLIN CONSULT, the West Berlin engineering consultant, has won a DM 40m (£21m)
contract from East Germany to build a turn-key plant for the production of
baking yeast.

The contract was signed with Industrieanlagen-Import. The factory, which is to
have an annual capacity of 16,000 tons is to be built in Leipzig and is to be
completed by next year.

Berlin Consult's partner in the project is Standard Brands International in New
York, which is to provide the operating know-how.

The equipment for the baking yeast plant is to be provided by several
medium-sized German companies. Since 1969, Berlin Consult has built plants in
East Germany worth more than DM 500m and is also heavily engaged in the Soviet
and East German markets.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1482 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

U.S. motor industry optimistic for 1982 despite lower sales

BYLINE: BY PAUL BETTS IN NEW YORK

SECTION: SECTION I; American News; Pg. 5

LENGTH: 470 words

THE U.S. MOTOR industry ended 1981 in a state of continuing recession, although
the big three car makers expect their fortunes to improve this year.

General Motors, the largest U.S. car manufacturer, has reported its lowest
annual sales in 20 years. The company, which to date has temporarily laid off
113,800 workers, saw its car sales decline by 7.8 per cent to 3.8m cars from
1980's depressed levels.

Chrysler, however, finished 1981 with an 11 per cent increase in its domestic
car sales, which totalled 730,000 cars, compared to 660,000.

Although this marks a significant improvement for the troubled number three car
manufacturer, Chrysler still has a long way to go towards recovery.

Ford, the number two U.S. car maker, which reported yesterday, had another
disastrous sales year in 1981 with its domestic car sales declining 6.1 per cent
from the depressed levels of 1980 to 1.38m cars.

The overall car sales figures for Detroit's three big car makers show a drop of
more than 6 per cent, compared with 1980. Total sales declined from 6.4m in
1980 to 6m last year.

Although these sales figures are Detroit's worst since 1961, the U.S. car
industry's losses in 1981 will not be as high as the record losses of more than
$4bn the domestic car companies made in 1980. This in large part reflects the
extensive cost-cutting measures the U.S. motor industry took last year.

Coupled with the decline in sales, American car production also declined last
year to its lowest level in 20 years with domestic producers assembling an
estimated 6.2m cars compared to 6.3m cars in 1980.

December was a particularly bad month for Ford whose sales declined by 37.7 per
cent to 72,036 cars compared to 115,615 cars in December 1980.

GM's December sales declined 19.6 per cent while Chrysler - which on balance had
a better year than the other two large manufacturers - saw its December sales
drop 23 per cent, reflecting Detroit's continuing malais - despite the
improvement in U.S. interest rates last month.

December was the third consecutive month of sharply declining sales of new cars
since the 1982 model year was launched last October.

The general U.S. economic recession and the efects of high interest rates did
not spare foreign manufacturers. Volkswagen of America, whose December sales
were about equal to those of December 1980, saw its total sales in 1981 decline
8.3 per cent compared to 1980.

The industry had originally anticipated that 1981 would produce a sharp recovery
in car sales which the three companies estimated would reach 10m. High and
volatile interest rates and the economic recession soon wiped away any hopes of
a significant turnaround and sent Detroit deeper in to the doldrums.

The industry now hopes 1982 will be the turnaround year.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1483 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

DC-10 slat controls to be modified

BYLINE: BY PAUL BETTS IN NEW YORK

SECTION: SECTION I; American News; Pg. 5

LENGTH: 258 words

McDONNELL DOUGLAS, the U.S. aerospace company which manufactures the DC-10 wide
body commercial aircraft, said yesterday it is proposing to make two changes in
the mechanisms that control the aircraft's leading edge wing slats as additional
safeguards in the event of an engine breakdown.

The proposals will be made to the 45 users of the DC-10 at a meeting at the
company's Long Beach, California, headquarters next Thursday.

McDonnell Douglas announced earlier this week it was calling a special meeting
to discuss modifications in the wing slat mechanisms. The decision to make
modifications follows the breakdown of an engine on an Air Florida DC-10 last
September which damaged the wing slats as the aircraft was about to take off at
Miami.

The proposed changes would ensure that slats remain extended even if the systems
that activate them are damaged severely.

One of the changes involves installing hydraulic valves to act as locks and keep
the slats extended if the hydraulic lines are broken. As a further safety
back-up, the company proposes to modify the cable system controlling the main
hydraulic valves which control the slats.

McDonnell Douglas said yesterday that the Miami accident was not related to the
1979 Chicago disaster when an American Airlines DC-10 crashed just after
take-off with the loss of 273 lives. * Wing slats are on the front part of a
wing and are extended to increase the size of the wing to increase the lift of
an aircraft at low speeds.They are crucial in take-off and landing.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1484 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Gadaffi agrees to compensate Exxon

BYLINE: BY OUR NEW YORK CORRESPONDENT

SECTION: SECTION I; American News; Pg. 5

LENGTH: 304 words

LIBYA HAS agreed to compensate Exxon, the world's largest oil company, for
assets abandoned by it last November at a time of growing confrontation betwen
Tripoli and Washington.

The announcement came as a surprise, given the bitter Libyan reaction to Exxon's
pull-out. The company said that it had agreed to sell its assets to the Libyan
National Oil Company for "slightly less than noet book value."

The Libyan company did not disclose the sum involved nor reveal what the net
book value of the assets is. They included a 49 per cent stake in oil-producing
operations which had been running at a rate of up to 200,000 barrels a day, and
a similar share in the liqeufied natural gas complex at Brega.

Libya condemned Exxon's withdrawal as "tantamount to failure to carry out legal
commitments and a breach of contract." The pull-out came in the wake of growing
U.S. condemnation of Libya's support for terrorist actions and the first reports
of plots by Colonel Muammer Gadaffi's regime to assassinate President Ronald
Reagan.

The U.S. Administration silently approved Exxon's action. But despite its
encouragement to American citizens to withdraw from Libya -- prior to the order
in December that they should do so -- the evidence is that the decision was
based on commercial rather than political considerations, in particular the high
price of Libyan oil.

Libya's agreement to purchase the assets left by Exxon may be accounted for by
its wish to reassure other U.S. oil companies still operating in the country --
Occidental, Mobil and Continental.

Exxon has said it expects to complete its withdrawal from Libya by the end of
this month.

Although other major U.S. oil companies have considered following Exxon's
action, they have continued to maintain their presence in the country.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1485 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Unions and Democrats form united front

BYLINE: BY REGINALD DALE, U.S. EDITOR, IN WASHINGTON

SECTION: SECTION I; American News; Pg. 5

LENGTH: 239 words

PRESIDENT Ronald Reagan's hard-nosed economic policies are encouraging a new bid
for unity by the Democratic Party and U.S. organised labour, two groups whose
relations have been distant over the past decade.

This week saw the first meeting of a 20-member Labour Council, composed of union
presidents, set up by the Democratic National Committee. The council's first aim
is to secure the election of a pro-labour Congress.

Mr Charles Manatt, the national committee's chairman, said after the meeting
that the council's creation "marks the reaffirmation of the partnership between
working men and women, organised labour and the national Democratic Party."

It is not clear, however, how long the new-found harmony will last, given that
it is based mainly on opposition to Reaganomics and that the council itself is
an amalgam of liberals and conservatives.

In its first year of office, the Reagan Administration had shown itself to be
"the most anti-union, anti-worker administration in this country in the last 50
years," Mr Manatt said.

His remark drew an immediate rejoinder from the White House, where Mr Robert
Bonitati, chief of labour liaison, said it would be "far healthier" if labour
took a more bipartisan approach. "Instead of putting all their eggs in one
basket, they should be making a conscientious effort to participate in the
Republican party at national, state and local level," he said.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1486 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Venezuelan oil row highlights debate over economy

BYLINE: BY KIM FUAD IN CARACAS

SECTION: SECTION I; American News; Pg. 5

LENGTH: 955 words

PETROLEOS DE VENEZUELA, the state oil monopoly and the largest company in Latin
America with sales of $18.8bn ($9.76bn) in 1980 has become ensnared in a major
controversy reflecting the clash in Venezuela between rough-and-tumble politics
and long-term economic interest.

The opening shots were fired in mid-December by Dr Leopoldo Diaz Bruzual, the
Central Bank president, and a key economic adviser and personal friend of
President Luis Herrera Campins.

Dr Diaz Bruzual, in a year-end report on the economy, charged the company with
inefficient administration. He argued that growth in the oil industry's
personnel and salary levels had far outpaced productivity increases in the six
years since the country's main economic sector was taken over by the state.

Sharp rebuttals came from Gen Rafael Alfonzo Ravard, Petroleos's president, Dr
Humberto Calderon Berti, the Energy Minister, and others. But Dr Diaz Bruzuel
repeated his attack two days later.

Personal and ideological rivalries have characterised President Herrera
Campins's economic team ever since his Christian Democratic Administration took
office in 1979.

Thus Dr Diaz Bruzual's comments were seen by some as merely a pretext to attack
the Energy Minister, since both men share an ill-concealed animosity. To many
observers the Central Bank president's charges were superficial and failed to
take into account the complexities involved in managing one of the world's
largest and oldest oil industries. The first commercial oil well was sunk in
Venezuela in 1914.

Both the Petroleos president and Dr Calderon Berti were quick to point out that
Venezuela had inherited an ageing-industry requiring massive financial and
manpower injections in order to stem decline in existing fields and open up new
areas. They noted that the industry's 40,000 workforce produces two-thirds of
Government revenues while the bulk of the other 200 state-owned enterprises make
losses.

But the controversy has deepened public pessimism over the Government's ability
to stem the deterioration in Venezuela's economic performance. GNP rose 8.4 per
cent in 1976, but it fell more than 1 per cent in 1980.

It has also tended to distract from what many government and private sector
economists, including Dr Diaz Bruzual, see as light at the end of the tunnel in
this protrated decline.

They contend that even the tiny 0.3 per cent GNP growth in 1981, despite more
than a 4 per cent fall in petroleum activities, may mean that the five-year
deterioration has finally reached bottom.

The prolonged decline reflects the effects of the excessively rapid growth
following the 1973-1974 increase in oil prices and a deliberate cooling of the
economy be the Herrera Campins Administration after it took offce. Growth was
sacrificed in its efforts to put the Government's finances in order and combat
soaring inflation.

While the Government has reduced the inflation rate from a record 23 per cent in
1980 to around 16 per cent in 1981, the process has had a high political and
economic cost. Unemployment has increased to 9 per cent, and many small and
medium industries have gone out of business.

With just two years left in his five-year term, and opinion polls showing only a
20 per cent public approval of economic policies, the Herrera Campins
Administration has undertaken a major effort to reactivate the economy.

While capital expenditure represents only a quarter of the $20bn 1982 budget,
the Government plans to draw upon reserves and the oil industry to build up
Government capital spending to over $10bn. Such investment is essential if
renewed growth is to be achieved in a country where the state controls about 50
per cent of the economy.

Nevertheless, any real improvement in 1982 may hinge on a mixture of oil prices
and party politics, two factors that have determined social and ecomomic welfare
for most of Venezuela's modern history. The outlook in toth areas is uncertain.

Even before Dr Diaz Bruzual's attack, Venezuelan oil-men were forecasting a
difficult year in 1982. Oil prices are expected to grow only marginally, if at
all, after the huge jumps between 1979 and 1981 which saw prices rise from an
average $17.69 a barrel to over $30 a barrel.

There is a growing downward pressure on the price of heavy crude which makes up
over a third of the country's 1.8m barrel-a-day exports. This has prompted
negotiations with France and other European countries for long-term heavy crude
supply contracts. In fact, Dr Calderon Berti admitted in mid-December that
Venezuela could be forced to further "adjust" oil prices, a euphemism for
reducing prices.

Venezuela expects oil income to total $19.6bn this year with the Government
receiving $14bn. Many observers predict that declining oil revenues could force
Venezuela to seek further foreign loans despite its present $19bn foreign debt.

An even darker view of Venezuela's economic outlook is painted by Dr Petro
Palma, a prominent private sector economist, who fears party politics may stand
in the way of stimulating the economy.

"Assuming the economy remains stagnant in 1981, then 1982 is not likely to see
better than 2 per cent growth and 1983 and 1984 are electoral and post-electoral
years, respectively, the country faces the prospect of no economic reactivation
until 1985," he says.

The tendency to give politics precedence over practical economic considerations
plainly has implications for one of Latin America's longest-lived democracies.
The decline of the economy, with its pressures on the country's 16m population,
which doubled in the past decade, has already sparked social unrest which could
intensify in the future.

LANGUAGE: ENGLISH

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Financial Times (London,England)

January 7, 1982, Thursday

World Bank directors approve new 1.5% fee

SECTION: SECTION I; American News; Pg. 5

LENGTH: 121 words

DATELINE: WASHINGTON

The World Bank's directors have voted to add a new 1.5 per cent fee on the
arrangement of all new loans.

A bank official said borrowers would be able to add the fee to the total of the
loans, thus spreading out the additional cost over many years. The bank's
present 0.75 per cent commitment fee would continue to be charged.

The official was unable to estimate how much the new fee would bring in. But in
the year ended June 30, the bank made loans totalling $9.6bn to the poor
countries of the world. A 1.5 per cent fee on those loans would have amounted
to $144m.

World Bank loans bear interest well below the current market rate. Current
loans are being made with interest at 11.6 per cent a year.

LANGUAGE: ENGLISH

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1488 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Aid to Ulster increased by $90m

BYLINE: By Brendan Keenan in Belfast

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 202 words

THE GOVERNMENT is to increase its spending in Northern Ireland in the coming
financial year by £90m, more than the level laid down in the recent White Paper
on public spending.

The increase, announced yesterday by Mr James Prior, Northern Ireland Secretary,
means that total government spending in Ulster in the next financial year will
be just over £3.5bn. This is 8 per cent up on the expected 1981-82 total and 3
per cent higher than the White Paper figure.

Housing and youth employment training are to take priority in the programme. In
addition, an extra £12m is to be provided for the security services, mostly for
extra police and prison staff.

Mr Prior said it would be some weeks before he was ready to announce any
political initiative.

The economic measures were not directly linked to political progress, but he
hoped they would convey the message that the Government was aware of the
problem. If people agreed to disagree in a reasonable manner, they could make
progress in 1982.

Local politicians gave a guarded welcome to the announcement. The northern
committee of the Irish Congress of Trade Unions said the plan was not a major
onslaught on fundamental problems.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

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Financial Times (London,England)

January 7, 1982, Thursday

£28m grant for steel industry

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 109 words

GRANTS totalling more than £28m to help workers in the British steel industry
who are affected by plant closures and modernisation were announced yesterday by
the European Commission.

The grants, made under Article 56 of the European Coal and Steel Community, will
help to fund schemes for early retirement, retraining and income support which
are administered by the Department of Industry.

A total of 13,607 workers are affected by allocations at plants including
Scunthorpe, Shotton, Ebbw Vale, Trostre and Velindre and the Round Oak Steel
works at Brierley Hill. Many redundant workers in the private steel sector are
also covered.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

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Financial Times (London,England)

January 7, 1982, Thursday

Higher chemical output expected

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 74 words

THE UK chemical industry's output is expected to rise by 3.5 per cent in volume
terms this year compared with 1981, according to the Chemical Industries
Association.

The forecast follows signs of a continued improvement in the underlying trend of
UK chemicals activity in the second half of 1981. This improvement compares
favourably with that of chemical producers on the Continent, even though it
started from a much lower level.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

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Financial Times (London,England)

January 7, 1982, Thursday

Less energy used

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 48 words

ENERGY use in the UK fell by 1 per cent in the three months September-November
compared with the same quarter of 1980, according to Government statistics
published yesterday.

The figures indicate that the pattern of energy use is settling after two years
of substantial decline.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1492 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Grade group may face court over compensation

BYLINE: BY JOHN MOORE

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 455 words

A COURTROOM battle is set to begin over a record compensation package worth more
than £700,000 which Associated Communications Corporation, the entertainments
conglomerate headed by Lord Grade, intends to pay to its former managing
director.

The Post Office Superannuation Fund, which holds 2.5 per cent of Associated's
non-voting 'A' shares, is seeking an injunction in the courts against the
company to stop Mr Jack Gill, 62, the former managing director, receiving
£560,000 in cash.

The fund is also seeking to stop Mr Gill from being allowed to buy a company
house, with a market value of £275,000, for £165,822.

This unusual move by a major investing institution, supported and largely
financed by the National Association of Pension Funds, has been made against a
background of mounting anger over the circumstances of Mr Gill's departure from
the group, and the size of the payment which is intended to be made to him.

Sir Leo Pliatzky, a director of Associated, has described the episode as
"unsavoury and distasteful." He said yesterday: "If minority shareholders feel
the need to take additional action they should be able to do so. I am not
critical of their action."

Associated has planned to hold a meeting on Friday of voting shareholders to
approve the compensation payment to Mr Gill, who has been acting as a consultant
to Trident Television in recent months.

Until yesterday approval of the package looked a foregone conclusion as Lord
Grade, who was believed to be in the U.S. yesterday, holds 27.6 per cent of the
voting shares, and Mr Gill holds another block of shares of 15 per cent which he
could cast if the vote seemed in doubt.

But lawyers for the Post Office Superannuation Fund are seeking an undertaking
from Associated that in spite of the outcome of the meeting on Friday no payment
will be made to Mr Gill until the court has decided the injunction. The matter
is due to come before the court next Monday.

Unless Associated gives the undertaking an interim injunction will be sought
against Associated in the courts this afternoon.

Last night Associated said: "We are taking legal advice about the meeting and
whether it can go ahead; if so, in what form."

The petition for the injunction, which alleges that "no explanation is given for
the reasons for the resignation of Mr Gill," claims that "no reasonable director
could have formed the opinion that there was any benefit to the company or to
the general body of its members in making a substantial gratuitous payment to Mr
Gill."

It said that the proposed payment of £560,000 represented over 68 per cent of
the total amount paid to the shareholders of the company by way of an interim
dividend.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

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Financial Times (London,England)

January 7, 1982, Thursday

Financial pressure on business has eased, Howe says

BYLINE: BY HAZEL DUFFY INDUSTRIAL CORRESPONDENT

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 322 words

SIR GEOFFREY Howe, Chancellor of the Exchequer, summarised the state of the
economy and its prospects in a paper submitted to the meeting of the National
Economic Development Council yesterday.

The Chancellor's paper, reviewing the current position says, the rate of
inflation and the growth of money national income have both halved in the past
18 month.

Pay settlements in the 1980-81 pay round averaged about 9 per cent, half the
level in the 1979-80 round. And there have also been some impressive
improvements in productivity, particularly in manufacturing, with considerable
evidence of a change in attitudes to management and work practices and a new
readiness to behave flexibly, and realistically.

"These developments, combined with the fall in the exchange rate in the summer
of 1981 have led to some recovery of the competitiveness we lost over the
previous five years and have eased the financial pressure on business."

The paper goes on to say, however, that much remains to be done. "The general
picture is one of the economy adjusting to a lower rate of inflation, and
becoming more efficient and competitive, but at a pace that is still
frustratingly slow."

Calls for Government-led growth in demand, however, are dismissed by the
Chancellor. "The choice faced in Britain is not between government-generated
expansion and stagnation. It is, rather, a choice between government-generated
inflation (and rising import penetration) and industry-generated recovery in a
climate of improving price stability."

"Greater productivity and better competitiveness are the keys to longer-term
growth," says the paper. Although action by companies to cut costs may
initially reduce employment and have damaging efects on a particular local
economy, "often the choice is between higher productivity with fewer jobs in the
short term, and no jobs at all if the higher productivity is not achieved."

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1494 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

TUC challenges growth target

BYLINE: BY OUR INDUSTRIAL CORRESPONDENT

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 326 words

THE CHANCELLOR of the exchequer came under attack from the TUC at yesterday's
meeting of the council when he refused to meet a request that two of its
reflation demands public capital spending and VAT be run through the official
forecasts.

CBI members of the National Economic Development Council concentrated their
pleas to the Chancellor on the need for Government to do something about cutting
the costs borne by the private sector of industry.

Mr Len Murray, TUC general secretary, called the official forecasts of 1 per
cent growth in 1982 "utterly unacceptable," while Sir Terence Beckett, CBI
director general, described such a growth rate a "stagnation."

The TUC members claimed that the Government could do more to stimulate growth
without putting the control of inflation at risk. Mr Murray asked for two
variables - an increase in public capital expenditure of £2bn and a reduction in
VAT from 15 per cent to 12 per cent - to be run through the forecasts to see the
effect this would have on inflation, output and unemployment.

He said the exercise could be done in "half an hour," and the Chancellor could
come back to the next council meeting with the results so that members had some
options to discuss.

But the Chancellor told TUC members: "You cannot say a forecast is unacceptable,
otherwise you are like Canute resisting the tides." The discussion which
followed did not produce a clear-cut answer, although Mr Geoffrey Chandler, NEDO
director general, described the outcome as the Chancellor "agreeing to come back
to council in principle, but not precisely on the terms requested by the TUC."

The CBI said that the private sector had made a major chtribution to economic
performance in reducing costs. While supporting the Government on its priority
to reduce inflation, CBI members said the Government could do something to help
industry by reducing the National Insurance surcharge and interest rates.

LANGUAGE: ENGLISH

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1495 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Water union set to reject pay offer

BYLINE: BY PHILIP BASSETT, LABOUR STAFF

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 378 words

WATER authority hopes of securing union acceptance of a 9.1 per cent pay deal -
one of the highest so far in this wage round - will receive a serious setback
today when the industry's second-largest union, the National Union of Public
Employees, rejects it.

Voting in the industry's largest union, the General and Municipal Workers', is
thought to be heading for acceptance, leaving the negotiations for the 32,000
water and sewerage workers - one of the bargaining groups with most industrial
muscle - in a state of confusion.

* Power workers' shop stewards are pressing for any pay offer to the 90,000
electricity supply manual workers, whose annual pay negotiations open today, to
be put to a ballot. Previous ballots have rejected offers which, have in turn,
been improved by the employers.

Union leaders are expected to present a claim today for substantial increases
and improvements in hours and additional payments. The Electricity Council,
representing the 12 area boards and other employers, is expected to delay
replying until February 4.

* Leaders of the 7,000 opencast coal workers have called for an urgent meeting
with employers to press for improved pay and conditions within the lifetime of
their present agreement, which ends in June.

A delegate conference of the industry's main union, the Transport and General
Workers, yesterday threatened withdrawal from the civil engineering working
rules agreement, under which the industry's negotiations are conducted.

A number of delegates said they would be prepared to take industrial action in
support of their claim. They believe that independent negotiations between the
union and the opencast coal contractors would improve their rates.

Mr George Henderson, the TGWU national officer for the construction industry,
said yesterday: "I have every sympathy and support for our members who work
under hazardous conditions and who are entitled to an improvement in their wages
and conditions, based on their productivity and the profits they are making for
the NCB."

* A meeting of the workforce at British Aluminium's smelter at Invergordon in
the Scottish Highlands voted yesterday to begin a "work-in" at the plant, which
is being closed with the loss of 890 jobs.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1496 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

German price advantage on industrial gas

BYLINE: By Martin Dickson, Energy Correspondent

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 294 words

THE AVERAGE price paid for gas by British industrial and commercial users in
1981 compared favourably with France, Belgium and Italy but was significantly
higher than the average in West Germany, according to a survey by National
Utility Services, an independent energy consultancy.

The survey estimates that the average price in the UK was 29.50 pence per therm,
compared with 27.10 in West Germany, 34p in France, 34.20p in Belgium and 38.80p
in Italy.

It points out that UK industrial and commercial gas prices rose by only 3 per
cent in the 12 months to September 1, 1981. This Followed industrial protests
over energy prices which led to a Government freeze on industrial gas price
rises.

Italy suffered an 89 per cent price rise during the same period, Belgium one of
88 per cent and France 50 per cent. West German average prices rose by only 1
per cent.

The report says the UK average price is dearer than in other countries surveyed
which have their own indigenous supplies - the U.S., where the average is 21.70p
a therm, Canada 15.40p and Australia 12.75p. The UK is also the only country
surveyed where an extra charge, of nearly 2 per cent, is levied on large-process
users.

British Gas, however, offers higher discounts than other utilities to large
companies with contracts for interruptible supplies - gas which can be cut off
at short notice at times of peak national demand. The British Gas discount of
13.5 per cent compares with a maximum of 6 per cent elsewhere.

* Norsk Hydro, the Norwegian energy company, is still considering the UK as a
possible site for a 500,000 tonnes-a-year ammonia plant, according to the latest
issue of the company's magazine. The other contenders are Norway and the
Netherlands.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

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Financial Times (London,England)

January 7, 1982, Thursday

Poll boost for Jenkins

BYLINE: BY PETER RIDDELL, POLITICAL EDITOR

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 138 words

MR ROY JENKINS is likely to have a clear run from the Liberals to fight the
Glasgow Hillhead by-election if he decides to put his name forward. Many Social
Democratic Party leaders in London expect that he will favour standing, and he
is already assured of the support of local SDP members.

Mr Jenkins who was formerly president of the European Commission, is not saying
anything publicly until after the funeral today of Sir Thomas Galbraith, the
former Conservative member for the constituency who died last weekend. Mr
Jenkins has not yet finally made up his mind, though he is likely to have been
encouraged by the results of a National Opinion Poll.

This showed that he would receive 33% of the vote for the alliance, against 31%
for Labour, 22% for Conservatives and 13% for the Scottish Nationalists.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1498 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Why marketers must hunt for value

BYLINE: BY MICHAEL THOMPSON-NOEL

SECTION: SECTION I; The Marketing Scene; Pg. 7

LENGTH: 1405 words

HIGHLIGHT: The year ahead: grim in whole, or just in parts?

WHAT WITH phantom meteors over Nottingham, and the seasonal reappearance of the
nudge-nudge, suggestive-digestive, type of telly commercial so beloved of the
holiday trade, it might be thought that the UK advertising business had suffered
such a creative blowout over Christmas that it was reluctant to face the New
Year.

That is by no means so, for while 1982 is likely to be grim in parts for the
marketing fraternity, the broad-scale view is that by the second half of the
year, advertising expenditures will be bubbling nicely in readiness for the
consumer boom confidently expected in 1983.

Even the Advertising Association, a body noted for prudishness when it comes to
forecasting, recently frisked up its heels and announced that from the second
half of this year, the outlook was grand.

First, it revised its sums so as to project a cash gain in total advertising
expediture (display plus classified) last year of 10 per cent -- an anticipated
fall, in real terms, of only 2 per cent. Such a gain will have taken the
advertising total to around £2.82bn.

Second, it said that advertising expenditures looked set for a return to real
growth from the second half of 1982.

Finally, it predicted a "best-year-ever" for advertising in 1983, with display
expenditure reaching an all-time high in next year's third quarter.

In the AA's view, total advertising expenditure this year is likely to increase
by 14 per cent, while expenditure next year will rise by an estimated 15 per
cent -- anticipated gains, in real terms, of 3 and 5 per cent respectively,
which ought to be good news for agencies and good news for the media, if not for
manufacturers of second- and third-rank brands struggling to keep up.

This is not a universally-held view of possible developments. For example, the
Henley Centre for Forecasting said this week that it had become convinced that
the depression in consumer spending that it expects would see "deflation of the
advertising bubble" in 1982, and that it was possible that the
never-had-it-so-good days were rolling to an end. (Quite what this meant, it
was impossible to be sure, but Henley did go on to warn that the communications
industry should at least prepare itself for harder times.)

At the J. Walter Thompson agency, chairman Jeremy Bullmore, who is also chairman
of the Advertising Association, says that "the crucial factor is whether there's
going to be any reflation. That is bound to influence events from the second
half of this year -- though not before then, and maybe not even then.

"The second factor will be last year's profits levels. If advertisers simply
haven't got the money, they are bound to delay their return to more aggressive
spending levels, whatever they think of advertising's worth.

"And their profits, let it be said, will depend on whether they've got their
total marketing right: whether they're selling the right product in the right
place at the right price."

As for agencies, says Mr Bullmore, they are increasingly going to find that the
need to secure some indication of advertising's value and return on investment
is becoming more acute.

Had the end of fixed agency commissions produced a blood-bath of price-cutting?
"I am far from certain," says Mr Bullmore, "as to how much of the is going on.
After all, some advertisers see their agency as an overt extension of their
marketing department, and are happy to pay for whatever services are rendered.
Others just want advertisements -- not marketing advice. An advertiser has got
to decide exactly what it is he wants."

At Young and Rubicam, vice-chairman Michael Townsin says he is generally
optimistic, and that there are "no signs that 1982 will be in any way different
to 1981, which was a pretty good year for advertising."

At Leo Burnett, however, chairman Dennis Barham says he is "fairly pessimistic
for the economy as a whole, while the signs for advertising are that it will be
just as tight a year as last."

That hardly worries him, for Burnett's already has £15m worth of new business in
the pipeline for 1982, which means Burnett's is already looking at current year
billings of more than £60m. It has 27 clients, every one of whom pays a full 15
per cent commission.

That Burnett's has so much new business already in the pipeline is one of many
factors to be borne in mind when studying the new Campaign agency tables,
published today, for they are strewn with pitfalls.

That this should be so is exclusively the fault of agencies. Some of them pile
all sorts of PR and design and other fringe earnings into their figures. Others
simply lie.

But if the figures for the Top 20 reveal anything -- as indeed they do -- it is
the depth of the trouble into which Interpublic has sunk in Britain.

Interpublic is the world's biggest advertising concern, and can derive no joy
from the combined performance of its three London shops: McCann-Erickson, Wasey
Campbell-Ewald, and Lintas.

Lintas is the most stable of the three, through its billings growth last year,
at 7.4 per cent, was only half that of the Top 20 shops combined, whose total
billings rose from a claimed £914m in 1980 to £1.05bn (+14.9 per cent).

As for Wasey's and McCann, the fault seems to lie not so much in London as at
Interpublic, in New York, which seems to operate miles up, with its head stuck
in the clouds.

Between them, Wasey's and McCann shed 72 staff last year, but then member
agencies of the Institute of Practioners in Advertising shed a total of 850
during the year. The total employed in IPA agencies is now 14,700, a 5 per cent
fall on 1980, which means the total is back to its 1978 level. Most of the
losses occured in London, where numbers employed fell by 800 to 10,800. Nearly
half the losses were in the IPA's "executive" category.

The most significant feature of the agency year was the marked success of the
new-breed shops, which not only blacked the eyes of much bigger, American-owned,
rivals, but made reputations for themselves on the creative front.

There are six new-look shops worth watching: Grandfield Rork Collins, whose
total billing, including grossed-up fees, is virtually £30m; Wight Collins
Rutherford Scott, which has just passed the £20m mark; Legas Delaney; Lowe and
Howard-Spink; Gold Greenlees Trott, and Brignull le Bas.

According to estimates by Campaign, a minimum of £227m worth of accounts changed
hands last year, which shoots to ribbons the bigger agencies' claim that account
moves, in a given period, represent only a tiny fraction of the whole.

According of estimates by Robin Wight, a founder-director of Wight Collins,
approximately £60m worth of the accounts that moved went to agencies that did
not exist three years ago.

That's showbiz for you.
Campaign's Top 20 UK Agencies
1981 1980 Staff
billings billings % gain (fall), (previous
Agency (£m) (£m) 1981 on 1980 year)
 1 Saatchi and Saatchi + 101.20 83.00 21.9  540 (530)
 2 J. Walter Thompson + 96.10 82.50 16.5  500 (511)
 3 D'Arcy-MacManus and Masius 88.00 75.00 17.3  454 (449)
 4 McCann-Erickson 76.54 74.97 2.1  415 (436)
 5 Ogilvy and Mather 71.40 61.20 16.6  339 (378)
 6 Collett Dickenson Pearce 60.69 61.61 (1.5) 237 (271)
 7 Foote Cone and Belding + 56.00 45.00 24.4  291 (282)
 8 Young and Rubicam 52.36 46.41 12.8  301 (315)
 9 Allen Brady and Marsh 50.32 39.12 28.6  304 (253)
10 Dorland 46.00 38.00 21.1  260 (250)
11 Ted Bates 43.61 39.64 10.0  224 (237)
12 Leo Burnett 42.90 38.40 11.7  235 (235)
13 Boase Massimi Pollitt 39.30 32.20 22.0  192 (190)
14 Greers Gross + 34.00 24.00 41.7  125 (102)
15 Lintas London 33.50 31.20 7.4  183 (182)
16 Benton and Bowles 33.42 28.99 15.3  211 (206)
17 Wasey Campbell-Ewald 33.20 35.20 (5.7) 202 (253)
18 Doyle Dane Bernbach 31.25 27.05 15.5  169 (172)
19 Grey Advertising + 30.42 22.10 37.6  136 (112)
20 Davidson Pearce 30.00 28.00 7.1  167 (167)

+ Notes: Saatchi: London billing only; Manchester not supplied. JWT: London
only; Manchester reported separately. FCB: Includes Park Advertising and
Welbeck PR. Geers Gross: Includes Geers Gross West, formerly Browne's. Grey:
Includes Leon Lerner, bought August 1981 (1980 billing: £14m), plus Grey's
Glasgow.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Jeremy Bullmore, Chairman of JWT: "Advertisers must decide
exactly what it is they want."

Copyright 1982 The Financial Times Limited

1499 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Another fall of snow on top of slush and ice?

BYLINE: BY MICHAEL THOMPSON-NOEL

SECTION: SECTION I; The Marketing Scene; Pg. 7

LENGTH: 529 words

HIGHLIGHT: THE RECESSION-WITHIN-A-RECESSION

THE RECESSION, as the Henley Centre for Forecasting remarked this week, is old
hat. But in a felicitous turn of phrase, it said that the current pincer attack
on UK real incomes -- lower pay settlements and stubborn inflation -- was
producing what marketers are experiencing as a "recession-within-a-recession --
a further snowfall on top of slush and ice."

Small wonder that Henley, in discussing short-range prospects, is forecasting
some marked volume reductions in consumer spending overall, though precisely
where the axe will fall is difficult to say.

In Henley's view, consumers are becoming extremely choosy in asserting new and
current priorities. "If spending overall declines sharply this winter," it
says, "then some sub-sectors and markets will do very badly. One can only
speculate, but some markets -- possibly for seasonal goods -- may simply fail to
materialise. Already, syndicated sales data suggests that volume sales may now
be declining fairly sharply."

Loss of confidence among some market planners, it says, could prove serious,
while advertising budgets could well be cut.

It makes the point that heavy de-stocking by retailers tended to exaggerate the
true declines in consumer spending in 1980, though spending overall was buoyant,
while by contrast, modest stock reductions now may be wrongly interpreted, and
thus help to understate true cutbacks in High Street spending.

"As yet," it says, "there is little evidence of across-the-board recession
mentality among consumers. But as the squeeze of real incomes tightens, against
a background of mounting unemployment, recession mentality may quickly emerge in
some markets. We would certainly expect this, given our consumer spending
forecasts."

In the specific case of food, Henley says that the UK shopping basket has
changed in a much more complex fashion than that indicated by preliminary study
of the latest generally-available data, the National Food Survey (second
quarter, 1981).

In its view, the key trends include: a move towards "cheaper" meats, continued
demand for quality convenience foods, mixed performance of snack foods, a
respite for canned foods, buoyancy of frozen foods, more home-baking, and a
mixed pattern in dairy products.

In the medium term, Henley says that even with the upturn in business projected
for 1983-1984, many features of the current recession will persist.

For instance, it reckons that widely varying rates of price increase, across
different categories of goods, will persist, so that over a five-year period
marked changes in relative costs will appear.

Markets will continue to exhibit considerable change, it says, both in terms of
new product launches, and of modification to existing ones.

"'Stable' markets, of a kind previously experienced, are a thing of the past.
Lifestyles and aspirations are undergoing a sea-change. Merely on grounds of
the overall numbers in various are groups, which are set to change considerably,
demand cannot remain stable."

Planning Consumer Markets in published quarterly by the Henley Centre for
Forecasting, 2 Tudor Street, London, EC4Y 0AA (01-353 9961), £500.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited

1500 of 2315 DOCUMENTS

Financial Times (London,England)

January 7, 1982, Thursday

Airtime: IBA issues guide

BYLINE: BY MICHAEL THOMPSON-NOEL

SECTION: SECTION I; The Marketing Scene; Pg. 7

LENGTH: 436 words

A GUIDE to "sound and responsible commercial practice" in the area of sale and
purchase of television advertising airtime has been published by the Independent
Broadcasting Authority.

The aim, it says, is to "clarify areas in which there have been differences of
opinion between the advertising business and the television programme
contractors."

The IBA makes clear that all ITV companies should make available for purchase --
and use their best endeavours to sell -- the maximum permitted number of
advertising minutes, at published rates.

The companies are warned that they are not to diminish the commercial airtime
available so as to harden advertising rates.

Further, the companies are told that "the fact that an advertiser chooses not to
participate in an incentive or share scheme should not affect his ability to buy
any particular available airtime at any published rate."

A statement of principles for the sale and purchase of airtime has been agreed
by the IBA' advertising liaison committee, formed last year.

Headed by the IBA chairman, Lord Thomson of Monifieth, the committee includes
representatives of the Incorporated Society of British Advertisers, the
Institute of Practitioners in Advertising, and the Independent Television
Companies' Association.

The system of "pre-empt" ratecards -- which allows a given advertiser to
pre-empt its rivals by bidding more than they have for specified airtime slots
-- should be operated efficiently and fairly, stresses the committee.

"Subject to availability," it says, "advertisers should have the right to select
at what level they enter the pre-empt structure, but this should not preclude
contractors from advising on the element of risk foreseen.

"There should be adequate cut-off points to avoid last-minute pre-emption
without notice," it says.

The committee warns that advertisers should be allowed maximum possible freedom
of cancellation or alteration of advertising chedules.

It also says that advertisers and their agencies should be given the earliest
possible notice of any significant change in terms or conditions, or in the
structure of ratecards, and thus an opportunity to express views and to comment.

"Unless there is a particular need for confidentiality," says the committee,
"contractors should promptly and regularly supply such information about the
medium as will enable judgments to be made of the television airtime market,
area by area."

The contractors enjoyed a buoyant year last year, with net advertising revenues
of more than £600m. Prospects for 1982 are considered good.

LANGUAGE: ENGLISH

Copyright 1982 The Financial Times Limited